The Governor’s Office of Economic Development (GOED) today announced LendingClub Corporation (NYSE: LC) will expand in Utah adding up to 860 jobs, $22 million in new state revenue and an estimated $17.85 million in capital investment over the next 10 years.
“Utah’s financial-tech industry continues to grow and LendingClub’s entry into the state will continue to strengthen the industry,” said Val Hale, executive director of GOED. “They will benefit from the growing technical talent and great work culture in the state.”
LendingClub, America’s largest online credit marketplace, is the leading provider of unsecured personal loans in the U.S. More than 40,000 people come to its site daily and the company is committed to helping motivated Americans improve their financial health.
“As we continue our growth and increase our focus on operating efficiency and resiliency, it is clearly time for us to expand beyond our San Francisco headquarters,” said Scott Sanborn, CEO of LendingClub. “Having a second site in the great state of Utah, with access to the region’s tremendous talent pool will help improve the service we offer to our members while ensuring business continuity.”
LendingClub will create up to 860 jobs over the next 10 years. The total wages in aggregate are required to exceed 110 percent of the average county wage. Projected new state wages over the life of the agreement may be up to $543,922,175 which includes wages, salaries, bonuses and other taxable compensation. Projected new state tax revenues, as a result of corporate, payroll and sales taxes are estimated to be $22,430,269 over 10 years.
“We’re excited to welcome one of fintech’s pioneers to Utah,” said Theresa Foxley, president and CEO of the Economic Development Corporation of Utah. “We hope that as the world’s largest peer-to-peer lending company, they’ll feel right at home—and busy—in Silicon Slopes.”
LendingClub may earn up to 20 percent of the new state taxes they will pay over the 10-year life of the agreement in the form of a post-performance Economic Development Tax Increment Finance (EDTIF) tax credit. As part of the contract with LendingClub, the GOED Board of Directors has approved a post-performance tax credit not to exceed $4,486,054. Each year LendingClub meets the criteria in its contract with the state, it will earn a portion of the total tax credit.
The company’s new center will be located at Thanksgiving Station in Lehi, Utah.