U.S. small-business lending-focused fintech Newity has raised $11 million in a strategic investment, The Block reported on Feb. 20 local time.

The investment was led by CMT Digital, the trading and investment arm of CMT Group. Multiple private and institutional investors also participated.

Newity was founded in 2020 during the COVID-19 pandemic to help with U.S. Small Business Administration Paycheck Protection Program loans. After the program ended, it shifted its business toward SBA government-backed loans and growth-secured loans. Since its launch, it has provided more than $12 billion in funding to more than 125,000 small and midsize businesses.

Newity operates as a loan service provider, not a lender. It works with lenders including Northeast Bank to handle loan applications, reviews and execution. Through an AI-based review platform, it automatically checks hundreds of data points such as credit checks, identity verification and analysis of tax documents.

Newity will use the funds raised in the investment to develop its strategy for moving loans on-chain. Co-CEO Luke Lahey (루크 라헤이) said, "AI and blockchain will reshape the financial infrastructure that connects entrepreneurs with capital." Newity plans to announce specific on-chain transition measures in the first quarter of this year.