# Grasshopper Bank: The US Digital Bank for Startups and SMBs > Grasshopper Bank — a US digital bank on its own national charter: startup and SMB banking, BaaS, SBA lending and the $369M Enova deal explained for clients. Author: Гордей Болотько — партнёр, Corporate & Commercial (https://wiki.private.law/authors/bolotko) Last modified: 2026-07-02T21:15:00.000Z Canonical: https://wiki.private.law/en/grasshopper-bank Topics: banking Jurisdictions: usa Functional tags: bank Semantic tags: bank Article type: child --- **Partner, Corporate & Commercial Law** --- Most US "digital banks" are neobanks running on someone else's license. Grasshopper is the exception: its own national charter granted by the OCC in 2019, startup and SMB banking, SBA lending and a BaaS arm. In December 2025 the bank agreed to be acquired by online lender Enova for about $369M — a deal every client of the bank should be watching. ## Who they are and the license > 🔗 **Related** > [US sponsor banks](/en/baas-sponsor-bank) · [BaaS and sponsor banks](https://wiki.private.law/en/baas-sponsor-bank) Grasshopper Bank, N.A. is a New York digital bank on a **de novo OCC national charter** received in **2019** — a rarity: most fintech banks buy existing licenses rather than build from scratch. **FDIC**-insured, held by Grasshopper Bancorp (Delaware). Founder Judith Erwin, a veteran of venture banking, built it for startups; since 2021 the CEO has been **Mike Butler**, who previously built Radius Bank (sold to LendingClub), and the bank pivoted to a broader market: SMBs, embedded finance and, later, consumers. FY2025 scale: total assets **$1.59B** (+83% YoY), loans $1.11B (+73%), deposits **$2.94B** (+125%). The deposit base exceeds the balance sheet — the excess is placed through partner-bank sweep networks; for a client that is an accounting detail worth understanding, not cosmetics. In August 2025 the bank raised $46.6M of fresh capital. > 🍓 Grasshopper is one of the few genuine digital banks in the US: its own national charter, direct FDIC insurance and three growth channels — startups and SMBs, BaaS, and 13 million AAA members after the Auto Club Trust merger. The Enova deal added a fourth storyline: a change of ownership. ## Products and programs - **Direct banking.** High-yield business checking, accounts for startups and VC funds, digital treasury management, commercial real estate and **SBA 7(a)** lending — 2025 was the bank's breakout year for SBA volumes. - **BaaS and API banking.** Grasshopper sponsors fintech programs and embedded-finance products — a second channel of deposits and fees. - **Consumer.** On April 1, 2025 the merger with **Auto Club Trust, FSB** — Auto Club Group's bank (~$495M in assets) — closed: Grasshopper became the exclusive bank powering deposit and lending products for **13M+ AAA members** across 14 states. ## Who gets in The core is US-incorporated business: Delaware C-corp startups, SMBs, investment funds. The requirements are standard: EIN, formation documents, beneficial-owner details, KYB. A non-resident founder of a US company is a selective case: the bank wants real US nexus — an address, a team, actual flows; a purely non-resident structure with no presence is not its profile, and such cases usually end up at [Mercury](https://wiki.private.law/en/mercury). Retail is limited to the inherited AAA-member channel. ## Onboarding The application takes minutes online; simple structures get decisions in days. Multi-layer holdings and foreign UBOs go to manual review and take weeks — or get declined. End clients of BaaS programs are onboarded on the partners' side. ## Risks and the regulatory backdrop The main storyline is the **Enova International deal** (December 11, 2025): the online lender behind NetCredit and CashNetUSA is buying Grasshopper Bancorp for about **$369M** in cash and stock. Closing is expected in **H2 2026**, subject to OCC and Federal Reserve approvals; as of Q1 2026 both sides confirmed the timeline. The deal is contested: consumer groups led by the NCLC object to handing a national charter to a high-cost lender — the classic rent-a-charter debate. For clients it is a continuity question: deposit terms, BaaS appetite and the startup focus under the new owner. Second: deposits above the balance sheet mean sweep placement at other banks — check where the money actually sits and how pass-through insurance is documented. Third, the ordinary integration risk of two mergers back to back: ACT in 2025, Enova in 2026. > 🍓 Grasshopper is a working model of a digital bank on its own charter — currently being bought by a non-bank lender. Until closing it is business as usual with direct FDIC insurance; after that, new owners and new questions. The sensible client mode: use it, and watch the H2 2026 news. ## Q/A ### **Can a non-resident open an account at Grasshopper?** The bank needs a US-incorporated business with real US nexus. A non-resident founder with an operating US company — possibly, selectively; a structure with no US presence — almost certainly not. ### **What will the Enova acquisition change?** Grasshopper becomes Enova's bank subsidiary (a new bank holding company is being formed); the charter and FDIC insurance remain. Closing is expected in H2 2026; until then products run as before — after that, watch the new owner's policy. ### **How does Grasshopper differ from Mercury?** Grasshopper is a bank: money sits on its balance sheet with direct FDIC insurance. [Mercury](https://wiki.private.law/en/mercury) is a neobank on top of partner banks with pass-through insurance. Mercury, though, is noticeably friendlier to non-residents. ### **Is Grasshopper a sponsor bank?** Partly: BaaS is one of its channels. Unlike pure sponsor banks such as [Cross River](https://wiki.private.law/en/cross-river-bank), it has a large direct business: startups, SBA loans, AAA members. 📎 Need the full picture? Request our banks comparison file (thresholds, compliance, timelines by jurisdiction) via the form below — we email it the same day. ## Related topics - [US Sponsor Banks: Partner Banks for Fintech and BaaS](/en/baas-sponsor-bank) - [Cross River Bank: The Sponsor Bank Behind US Fintech](https://wiki.private.law/en/cross-river-bank) - [Column N.A.: The Developer Bank for BaaS Programs](https://wiki.private.law/en/column-bank) - [Lead Bank: The Kansas City Sponsor Bank for Fintech Programs](https://wiki.private.law/en/lead-bank) *Prepared as an expert overview; not individual legal advice.* --- ## FAQ ### Can a non-resident open an account at Grasshopper? The bank needs a US-incorporated business with real US nexus. A non-resident founder with an operating US company — possibly, selectively; a structure with no US presence — almost certainly not. ### What will the Enova acquisition change? Grasshopper becomes Enova's bank subsidiary (a new bank holding company is being formed); the charter and FDIC insurance remain. Closing is expected in H2 2026; until then products run as before — after that, watch the new owner's policy. ### How does Grasshopper differ from Mercury? Grasshopper is a bank: money sits on its balance sheet with direct FDIC insurance. Mercury is a neobank on top of partner banks with pass-through insurance. Mercury, though, is noticeably friendlier to non-residents. ### Is Grasshopper a sponsor bank? Partly: BaaS is one of its channels. Unlike pure sponsor banks such as Cross River, it has a large direct business: startups, SBA loans, AAA members. 📎 Need the full picture? Request our banks comparison file (thresholds, compliance, timelines by jurisdiction) via the form below — we email it the same day. --- ## Factual claims - Partner, Corporate & Commercial Law - FY2025 scale: total assets $1.59B (+83% YoY), loans $1.11B (+73%), deposits $2.94B (+125%). - The core is US-incorporated business: Delaware C-corp startups, SMBs, investment funds. - The main storyline is the Enova International deal (December 11, 2025): the online lender behind NetCredit and CashNetUSA is buying Grasshopper Bancorp for about $369M in cash and stock.