NEWITY Receives $11M Strategic Investment Led By CMT Digital

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What is NEWITY’s main focus?

NEWITY secured $11 million in a strategic funding round led by CMT Digital, marking its first external capital raise, aimed at scaling operations and integrating blockchain technology to address a $350 billion annual funding gap for small businesses. NEWITY is a fintech platform facilitating access to affordable capital for small U.S. businesses, primarily through SBA 7(a) loans and proprietary growth term loans up to $350,000, with a focus on streamlining applications using AI-driven underwriting for faster approvals.

NEWITY operates as a lender service provider, partnering with SBA-approved banks like Northeast Bank to originate and approve loans, rather than acting as a direct lender. It offers a fully online platform with automated workflows, allowing businesses to prequalify in under 10 minutes and receive funds in as little as three weeks, significantly faster than traditional processes that can take over 12 weeks. Key loan features include lower interest rates, 10 year terms, no personal collateral, higher approval rates, and flexible uses, targeting U.S. based, owner supported businesses. The company’s AI platform analyzes hundreds of data points, such as credit history and tax documents, to streamline eligibility checks. Revenue comes from processing fees, supporting its mission to simplify capital access. Headquartered in Chicago with about 115 employees, NEWITY is expanding its team in marketing, partnerships, and technology roles.

The $11 million raise was structured as a Simple Agreement for Future Equity (SAFE). Led by CMT Digital, a venture arm of CMT Group focused on crypto and blockchain, the round included undisclosed private and institutional investors. No valuation or board seats were publicly shared. This capital infusion positions NEWITY to enhance its AI tools and develop blockchain infrastructure for tokenized small business credit.

This funding will accelerate NEWITY’s shift toward blockchain, enabling onchain loan tokenization to connect traditional lending with crypto capital markets. This could improve liquidity and reduce costs, but success depends on navigating SBA regulations and blockchain adoption among small businesses. The investment reflects growing interest in hybrid fintech models, potentially bridging a $350 billion gap while leveraging NEWITY’s established network of 125,000+ clients. Co-CEOs David Cody and Luke LaHaie emphasize reinventing financial infrastructure through AI and blockchain to empower entrepreneurs.

In the evolving landscape of small business financing, NEWITY emerges as a pivotal player, blending traditional government backed lending with cutting edge technology to address longstanding inefficiencies. Founded in 2020 amid the economic turmoil of the COVID-19 pandemic, the company was established by co-CEOs David Cody and Luke LaHaie to tackle the barriers small businesses faced in accessing emergency relief funds through the Paycheck Protection Program (PPP). Cody, with over 30 years in asset management, business development, and capital formation, brought Wall Street expertise to Main Street challenges, while LaHaie, drawing from 12+ years in commercial lending, transaction advisory, audit, tax, and lender services, focused on operational efficiencies. Their shared vision led to a platform that initially supported PPP disbursements for both borrowers and lenders, quickly evolving as the program wound down in May 2021.

Post-PPP, NEWITY pivoted to SBA 7(a) loans and introduced its own Growth Term Loans, positioning itself as a lender service provider rather than a direct lender. This model involves partnering with SBA-approved institutions like Northeast Bank to originate and approve loans, allowing NEWITY to focus on technology driven origination and servicing. By 2022, the company had launched a streamlined online application for SBA 7(a) loans, processing over 10,000 applications in months. In 2023, it expanded into Employee Retention Credit (ERC) claims, built an in-house expert team, and offered alternative financing for non qualifying applicants, complemented by educational resources to boost business creditworthiness. The following year saw NEWITY facilitate over $11.8 billion in SBA loans for more than 125,000 businesses, including startup options, solidifying its status as the leading SBA 7(a) facilitator. By 2025, accolades poured in: a #596 ranking on the Inc. 5000 list with 695% three-year revenue growth, and recognition for Cody and LaHaie on American Banker’s “25 People Who Will Change Banking in 2025” list.

At its core, NEWITY’s operations revolve around an AI first underwriting platform that evaluates hundreds of data points (including credit checks, identity verification, and tax summaries) to deliver prequalifications in under 10 minutes and funding in as few as 21 days. This contrasts sharply with conventional lender processes, which often rely on varied, sometimes paper based systems leading to delays exceeding 12 weeks. Loans average $118,800, with a $350,000 cap, featuring attractive terms like lower rates, no collateral, and versatile uses. The company’s revenue model, based on processing fees, has fueled its growth, enabling it to amass a client base of over 125,000 businesses and disburse more than $12 billion in total capital. Headquartered in Chicago, NEWITY employs around 115 staff, predominantly office based with some remote roles, and is actively recruiting in key areas to support expansion. The leadership team includes Chief Operating Officer Bryan Hallene, alongside Cody and LaHaie, who oversee strategic and operational facets respectively.

The $11 million strategic funding round, led by CMT Digital and including undisclosed private and institutional backers, represents a milestone as NEWITY’s inaugural external capital infusion. Structured as a SAFE, the investment underscores confidence in NEWITY’s trajectory, particularly its plans to integrate blockchain for onchain lending. CMT Digital’s involvement, as a crypto focused investor, aligns with NEWITY’s ambition to tokenize small business loans, enhancing liquidity and connecting them to broader capital markets. Co-CEO LaHaie highlighted how AI and blockchain will scale operations to meet market demands, while Cody emphasized reinventing infrastructure for entrepreneurs. The funds will bolster AI underwriting and develop blockchain tools, with a strategy announcement slated for the first quarter of 2026.

This move comes amid a $350 billion annual funding shortfall for U.S. small businesses, which constitute 99.9% of firms and nearly half the workforce. By leveraging blockchain, NEWITY aims to bridge this gap through tokenized assets, potentially attracting crypto investors and reducing intermediaries. However, challenges include regulatory hurdles from the SBA and blockchain’s nascent adoption in traditional finance. Competitors like Kabbage (now part of American Express), OnDeck, and blockchain pioneers such as Figure Technologies offer similar digital lending, but NEWITY’s SBA focus and onchain pivot provide differentiation. The investment signals a broader trend toward DeFi integration in real world assets, potentially transforming a market projected to see small business lending exceed $1 trillion annually by 2030.

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NEWITY’s $11 million investment not only validates its rapid ascent in fintech but also positions it at the forefront of innovation, where AI meets blockchain to democratize capital for America’s entrepreneurs.

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