### Estimated Net Return

Estimated returns reflect various assumptions, which assumptions may or may not occur. Certain key assumptions are described below. No representations or warranties are made as to the achievability of the estimated returns and actual performance may be materially different from estimated returns. Estimated returns are subject to change without notice. The information described below is for information purposes only and is not intended as an offer to sell securities issued by Loop Funding Inc.

Loop Funding Inc. and its affiliates expressly disclaim any and all liability for any representations and warranties, expressed or implied, contained in, or omissions from, this document.

Investors should read the offering memorandum for securities offered by Loop Funding Inc., especially the risk factors relating to the securities offered, before making an investment decision. All purchases of the securities are made pursuant to available prospectus exemptions.

**Assumptions**

The estimated net returns are a portfolio weighted estimate of the annual return after fees and bad debts that investors could earn from lending money to businesses seeking loans today. They are calculated by taking the gross interest rate less servicing fees and estimated bad debts that will occur in the future for each loan issued based on a model portfolio that is shown below. The average return is compounded and shown before tax. The estimates are updated periodically. See the full calculation and assumptions used in the calculation below.

To calculate your estimated annualized return, we multiply the estimated interest restes and loss rate for each loan grade by the estimated portfolio weights for the Auto-Lend plan to determine a weighted average interest rate and loss rate. We then take the weighted average rates and extrapolate them over a 5 year portfolio projection to arrive at a final net reutrn calculation.

The following are the estimated portfolio weights that are used in the current estimate:

Loan Grade | Conservative | Balanced | Aggressive |

A+ | 13% | 5% | 0% |

A | 13% | 5% | 0% |

B+ | 38% | 15% | 0% |

B | 38% | 15% | 0% |

C+ | 0% | 15% | 25% |

C | 0% | 15% | 25% |

D+ | 0% | 10% | 17% |

D | 0% | 10% | 17% |

E+ | 0% | 5% | 8% |

E | 0% | 5% | 8% |

The following are the estimated interest rates and loss rates that are used in the current estimate:

Loan Grade | Projected Net Loss Rate | Estimated Gross Interest Rate |

A+ | 2.60% | 6.99% |

A | 2.60% | 8.91% |

B+ | 4.10% | 10.72% |

B | 4.10% | 12.54% |

C+ | 6.08% | 14.50% |

C | 6.08% | 16.55% |

D+ | 9.59% | 18.74% |

D | 9.59% | 21.04% |

E+ | 14.28% | 23.46% |

E | 14.28% | 26.06% |

**Limitations to these estimates**

These returns are an estimate of the return after fees and bad debts for recently accepted loans on the marketplace. We use these calculations as we believe they are currently the most useful and accurate way to assess future investment performance because it takes into account both our fees and any future bad debts. However, as with many calculations it has limitations, which include:

- The calculation is based on estimated bad debt rates and the actual bad debt rates may differ.
- Gross interest rates are likely to change in the future which will impact your returns.
- The formula compounds interest monthly and therefore assumes continued re-investment using Auto-Lend for a period of 5 years.
- The returns are calculated pre-tax.
- It assumes that all funds are fully invested in Notes and does not include any amounts not invested.
- The estimate uses a model portfolio and the actual portfolio weight of your Notes are likely to vary from the one shown.
- The calculation assumes that your portfolio is fully diversified, to ensure this is the case, no single Note shoud make up more than 1% of your portfolio.