Figure says small-business lending tied to home equity is scaling to $500 million a year

Article Summary

Figure says its small-business financing product lets owners borrow against home equity to raise capital. The loans are underwritten and sold through the same system the company uses for its other HELOCs, which it says helps protect credit performance and keep liquidity flowing in the secondary market.

The company says the product is expanding as more people start businesses, borrowing costs stay elevated, and entrepreneurs look for quicker, less expensive financing, CEO Michael Tannenbaum told HousingWire in an interview.

Small-business growth

Figure cited U.S. Census Bureau data showing that Americans submitted about 27 million applications to start businesses from 2021 through 2025, roughly 53% more than the 17.6 million filings in the prior five-year period.

The company also pointed to the amount of home equity held by small-business owners. Nearly seven in 10 own their homes, and total U.S. home equity reached $35 trillion in the second quarter of 2026.

“Borrowing against your house is going to be the most cost effective way to borrow because you have a longer loan,” Tannenbaum said, noting that home equity loans can stretch to 30 years. He said lower rates and longer repayment terms can reduce monthly payments, making home equity appealing for business funding.

Figure has also tried to make home equity financing easier for entrepreneurs to access by offering the product through business-loan brokers, lenders and fintech firms instead of depending mainly on traditional mortgage loan officers.

“When you’re looking for business financing, you reach out to a business loan broker or a business lender, and we’ve embedded our product there where the demand is,” Tannenbaum said.

Distribution strategy and speed

Since launching the product, Figure has assembled a network of more than 150 brokers, lenders and fintech partners. Those partners can market the financing under their own brands, keep their customer relationships and use Figure’s technology for digital applications and closings.

Tannenbaum said that distribution model, along with the speed of the application process, has fueled growth. In the past, home equity loans were often tied to bank workflows that could take around 45 days, which made them less useful for business owners who needed money fast.

Figure says it can approve borrowers in as little as five minutes and fund loans in as few as five days. Borrowers can access up to $750,000, with repayment terms of up to 30 years.

The financing is aimed at uses such as expansion, hiring and working capital. Tannenbaum said real estate entrepreneurs could also represent an opportunity, since small-business owners in that sector can run into limits when applying through the U.S. Small Business Administration (SBA).

Tannenbaum said Figure’s funded volume would rank it among the top 25 SBA lenders based on the agency’s published rankings. He said that comparison is only a benchmark and does not mean Figure originates SBA loans.

He added that the product is designed to fill a financing gap in the process, not necessarily to serve borrowers who have already been turned down for credit.

“It’s not about the fact that it’s not a credit matter, so it’s not that these businesses don’t qualify for credit, but it’s a product and process matter,” Tannenbaum said. “If you have home equity, this is going to be a cheaper and better solution for you, and it’s going to be faster and easier.”

Borrowers still must meet income and property requirements, he said. Figure reviews how much income a business generates for its owner in order to repay the loan, using the same underwriting standards it applies to its other HELOCs.