Live Oak Bancshares is a bank holding company. Through its subsidiary, Live Oak Banking Company (the Bank), Co. is engaged in providing lending and deposit related services to small businesses nationwide in targeted industries. A main portion of the loans originated by the Bank are guaranteed by the Small Business Administration under the 7(a) Loan Program and to a lesser extent by the U.S. Department of Agriculture Rural Energy for America Program and Business & Industry loan programs. The guaranteed portion of the loan is available for sale in the secondary market. From time to time the Bank also engages in the sale of participating interests of the unguaranteed portion.