Newity, a Chicago-based fintech firm specializing in small business financing, announced on Thursday that it has raised $11 million in a strategic funding round. The investment was led by CMT Digital, a division of the trading and investment firm CMT Group, and included participation from several undisclosed private and institutional investors. This capital injection marks the company’s first formal fundraise, which began in late 2024 and concluded in December 2025. Structured as a simple agreement for future equity (SAFE), the round aims to bolster Newity’s mission to digitize the lending landscape and explore the transition of traditional loans onchain, The Block said in a news report.
The company was founded in 2020 by co-CEOs David Cody and Luke LaHaie during the height of the COVID-19 pandemic. Initially established to help small businesses navigate the complexities of the Paycheck Protection Program (PPP), Newity successfully pivoted its model after the program ended in May 2021. Today, the firm acts as a lending service provider for Small Business Administration (SBA) 7(a) government-backed loans and growth term loans. Rather than acting as a direct lender, Newity provides the technological infrastructure for partner institutions, such as Northeast Bank, to originate and approve financing for entrepreneurs.
Since its inception, Newity has processed and serviced more than $12 billion in financing for over 125,000 small businesses. The firm reports an average life-to-date loan size of approximately $118,800, with a maximum loan ceiling of $350,000. According to Cody, the primary differentiator for Newity is its ability to bypass the “paper-heavy” and inconsistent timelines often associated with traditional SBA lenders. While some banks have been slow to adopt modern technology, Newity offers a fully online application process and automated workflows that can reduce the time to funding from 12 weeks to just 21 days.
The firm’s proprietary “AI-first underwriting platform” is central to this efficiency. By analyzing hundreds of data points—including credit checks, identity verification, and tax document summaries—the system can provide borrowers with a prequalified loan amount in less than 10 minutes. This technological edge is intended to address a massive $350 billion annual funding shortfall faced by small businesses, which represent 99.9% of all U.S. firms. Co-CEO Luke LaHaie emphasized that the company is not merely improving lending but reinventing the financial infrastructure through the combined power of AI and blockchain.
Looking ahead, Newity generates its revenue through loan-processing fees and is preparing for a significant expansion into the digital asset ecosystem. The firm is currently exploring various options to bring small business loans onchain and expects to announce its specific technical roadmap in the first quarter of 2026. Currently employing approximately 115 staff members, Newity is actively hiring across its technology, marketing, and partner roles to support its growth and its vision of a more scalable, transparent financial market for entrepreneurs.
