Online Lenders Fizzling in Crisis With On Deck Agreeing to Sale

Many online lenders were born in the last crisis. In their latest test, they’re fizzling.

On Deck Capital Inc. said late Tuesday it had agreed to sell itself for $90 million, almost six years after an initial public offering that valued the online small-business lender at $1.85 billion.

Shares of On Deck and competitors including LendingClub Corp. and GreenSky Inc. have tumbled this year as the Covid-19 pandemic raised doubts about customers’ ability to repay loans. Kabbage Inc., which is backed by Japan’s SoftBank Group Corp., began suspending customers’ credit lines in the early days of the outbreak as ...