Benzinga | Mar 31, 2021 08:32AM EDT

FG New America Acquisition Corp M&A Target OppFi Announces Agreement With Brightside To Leverage Payroll Deduction For Non-Prime Borrowers

Opportunity Financial, LLC ("OppFi"), a leading financial technology platform that powers banks to help the everyday consumer gain access to credit, announced today that it has entered into an agreement with financial care platform Brightside to provide small dollar loans to non-prime borrowers at prime rates via OppFi's new loan product, SalaryTap.

SalaryTap is a multiyear small dollar installment loan product offered through employers that ranges from $2,000 to $6,000, extending prime pricing to non-prime consumers, and is repaid via payroll deduction. The product is fully transparent with no additional fees or charges levied on borrowers, and loan amounts are based on each borrower's income as a means of assessing loan affordability.

The agreement with Brightside is the first publicly announced arrangement for SalaryTap as OppFi expands this offering to a growing number of employers and distribution channels. Through this arrangement, OppFi believes SalaryTap will directly reach thousands of consumers working in industries ranging from healthcare and telecom to retail and manufacturing.

"We are excited to work with Brightside to expand access to credit for the everyday consumer with products that support our mission to build financial inclusion," said Jared Kaplan, chief executive officer of OppFi. "As we expand our offering for the 60 million consumers locked out of traditional options, we believe working with companies like Brightside will create a win-win proposition with more credit options for more consumers who need them."

"We focus on improving outcomes for working families and their employers by reducing financial stress, using a holistic and innovative Financial Care approach and a suite of partners that provide real solutions for working families." said Tom Spann, CEO of Brightside. "OppFi is creatively solving the credit access issue for those who need it most and we are proud to deliver its innovative and transparent solutions to employees via our platform."

Other early-stage SalaryTap pilots performed directly with employers have been underway since November 2020. The most common uses of funds for SalaryTap have been car repair, family needs, housing costs, and medical bills. A national roll-out for SalaryTap is planned for the second quarter of 2021.

On February 9, 2021, OppFi and FG New America Acquisition Corp. (NYSE:FGNA), a special purpose acquisition corporation, entered into a definitive agreement for a business combination that would result in OppFi becoming a public company.