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Securities-Backed Line of Credit

Can I use SBLOC proceeds to purchase additional investments?

Updated Oct. 27, 2026

No, SBLOCs are non-purpose loans, which means you can’t use the proceeds to purchase or trade securities.

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Securities-Backed Lines of Credit (SBLOCs) are offered by The Bancorp Bank, N.A., to Betterment clients. Betterment is not a bank. See more in disclosures.

Securities-Backed Lines of Credit (SBLOCs) offered by The Bancorp Bank, N.A. Betterment is not a bank. Require credit approval, cannot fund securities purchases or margin loans, and carry unique risks; terms may change without notice. Betterment earns revenue on SBLOCs.

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Betterment Cash Reserve is part of the Cash Sweep Program (“CSP”) and is offered by Betterment LLC. CSP requires a Betterment Securities brokerage account. Client funds in the CSP are deposited into one or more FDIC-insured banks (“Program Banks”). Assets in the Cash Reserve Program under the CSP earn variable interest. CSP assets are eligible for FDIC insurance (subject to certain conditions). Funds in brokerage accounts are protected by SIPC, but funds at Program Banks are FDIC-insured up to $250K per depositor per bank, with a potential aggregate limit of $4M ($8M for joint accounts) once the funds reach one or more Program Banks. Funds in transit to or from Program Banks are generally not FDIC-insured but are covered by SIPC. FDIC insurance limits include all accounts held at a bank, not just CSP funds. For details, see Betterment’s CSP disclosure and Form ADV Part 2. FDIC insurance information is available at FDIC.gov.

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Investing involves risk and there is the potential of losing money when you invest in securities. Past performance does not guarantee future results and the likelihood of investment outcomes are hypothetical in nature.Investments in securities are: Not FDIC Insured • Not Bank Guaranteed • May Lose Value. Before investing, consider your investment objectives and Betterment LLC's fees and expenses. For more details, see Betterment’s Form CRS, Form ADV Part II and other disclosures. Not an offer, solicitation of an offer, or advice to buy or sell securities in jurisdictions where Betterment LLC is not registered.

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