I would like to lend money to borrowers because my CD is about to mature and the rate is going to be horrible. Is there a solid way to lend money and set your own interest rate? Our a website that coordinates small loans for lenders? I know the risk would be a default but what are the laws protecting the lender? Are there any and if not how could I do this with some foresight?

You have basically no protection what so ever unless you are doing a secured loan, and even then can lose part of the value.

If they go bankruptcy you can lose all of your money you loan out.

Depending on how much you have on CD, here are other investments in mutal funds, municipal bonds and other investments that may be better if ou don't mind some risks.