SoFi Technologies, Inc. (SoFi (SOFI)) shares are up about 3.5% on Wednesday, trading at $18.56, as investors digest two significant developments: the launch of a small business lending platform and the company's role in the upcoming Trump Accounts program. Let's break down what's happening and what it means for the stock.

Small Business Lending Expansion

On Tuesday, SoFi announced the launch of SoFi Small Business Loans, a product that offers eligible entrepreneurs fixed loans of up to $250,000. The money can be used for equipment, inventory, or hiring staff. The company says applicants can check eligibility within minutes and get funding as soon as 24 hours after approval. The digital platform features zero application fees, zero origination fees, and no prepayment penalties. It's a natural extension for SoFi, which started with student loan refinancing and has since added personal loans, mortgages, credit cards, and investing. Small business lending opens up a new market and could help diversify its revenue streams.

Corporate Backing for Trump Accounts

According to reports on Wednesday, SoFi is among a group of major financial and corporate entities providing matching contribution initiatives for the Trump Accounts program. Other participants include Dell Technologies Inc. and JPMorgan Chase & Co. The Trump Accounts are a tax-deferred investment initiative for children, created under the 'One Big Beautiful Bill Act.' The program is scheduled for a nationwide rollout on Saturday, July 4. SoFi's involvement could drive new account openings and deepen its relationship with members.

Program Momentum Ahead of Launch

The U.S. Treasury Department is rolling out the accounts in partnership with Bank of New York Mellon and Robinhood Markets Inc. Treasury Secretary Scott Bessent recently stated that nearly 6 million children have already enrolled in the program, which provides a $1,000 federal contribution for eligible children born between 2025 and 2028. The scale of the program is massive, and SoFi's participation positions it to capture a slice of that growth.

SoFi Stock Short Interest

Short interest in SoFi Technologies rose during the most recent reporting period, increasing from 186.14 million shares to 195.79 million shares. That represents 15.48% of the company's publicly available float. Based on SoFi's recent average daily trading volume of 75.15 million shares, short sellers would need approximately 2.61 days to cover their positions without potentially putting significant upward pressure on the stock. The rising short interest suggests some bearish bets, but the stock's upward move today shows bulls are still in control for now.

SoFi Technical Analysis

SoFi remains above its key short- and medium-term moving averages. The stock trades about 8.5% above its 20-day simple moving average of $17.19 and roughly 10.4% above its 50-day SMA of $16.89. Those levels suggest buyers remain in control of the near-term trend. However, the stock is still about 16.7% below its 200-day SMA of $22.38, indicating the longer-term trend has yet to fully recover.

Momentum also continues to improve. The MACD remains above its signal line, and the positive histogram suggests bullish momentum is building. Still, the March death cross, where the 50-day SMA fell below the 200-day SMA, remains a longer-term technical headwind. Key resistance sits near $18.50, while support is around $16.50, close to the 20-day and 50-day moving averages.

SOFI Stock Price Activity: SoFi Technologies shares were up 3.51% at $18.56 at the time of publication on Wednesday, according to market data.