Amazon  announced today that it had originated over $3 billion in loans to more than 20,000 small businesses since 2011. One billion of those loans came in the past 12 months. Peyush Nahar, VP for Amazon Marketplace, released a statement on the milestone;

“We created Amazon Lending to make it simple for up-and-coming small businesses to efficiently get a business loan, because we know that an infusion of capital at the right moment can put a small business on the path to even greater success. Small businesses are in our DNA. Amazon is providing capital to small businesses to help them expand inventory and operations at a critical period of their growth. We understand that a small loan can go a long way.”

The data points Amazon shared were pretty compelling. 50% of the small businesses that take out a loan come back and do it again. Loans range from as little as $1000 but go up to $750,000. Amazon is now lending in the US, UK and Japan.

But here is the rub. While other online lenders must pay a hefty fee to acquire new borrowers that is not the case for Amazon. The worlds largest retailer already has the relationship with these borrowers. Marketing to these small businesses cost, well, very little.