The complex web of state lending laws has made it very unclear as to who can participate in the peer-to-peer-lending phenomenon. For example, in Oregon, you can take out a loan on Lending Club but you can’t make loans through Lending Club. In North Dakota you can only buy existing loans on the secondary market but you can’t borrow money by way of Lending Club. In Kentucky, you can borrow money from Lending Club, but you have to be an accredited investor to loan money on Lending Club.

In order to combat this confusion, Lending Club issued a statement on its blog titled, “Is Lending Club Available in My State?” Lending Club’s Rob Garcia wrote that whether or not residents of particular state can participate in Lending Club is one of the most frequently asked questions from potential customers.

Lending Club produced the following map to help clear the confusion:

If you would like to invest in Lending Club notes, you must reside in one of these states: California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Kentucky, Louisiana, Maine, Minnesota, Missouri, Mississippi, Montana, New Hampshire, Nevada, New York, Rhode Island, South Carolina, South Dakota, Utah, Virginia, Washington, Wisconsin, West Virginia, and Wyoming.

Residents in these states cannot directly make loans, but can buy them on the secondary market (FolioFN): District of Columbia, Kansas, Maryland, Ohio, Oregon, and Vermont are not eligible to become

Currently Lending Club is accepting borrowers from 42 states, with the exceptions of Iowa, Idaho, Indiana, Maine, Mississippi, North Dakota, Nebraska, and Tennessee. Lending Club borrowers must also be 18 years of age, have a valid bank account, a valid social security number and have a FICO score of at least 660.

Another difficulty is that who can participate in Lending Club and in what capacity they can participate in changes over time. Lending Club started accepting investors and borrowers in a few additional states in 2009 and 2010. Last week, P2P Lending News reported that Lending Club will no longer be able to make loans under $6,000 in the state of Massachusetts.