) can directly join the program without having to partner with a traditional bank, increasing options for small and minority-owned businesses, many of which have struggled to find lenders to accept their applications.
Less than half of small businesses had turned to a bank for a loan in the past five years, according to Fed data released on Tuesday. Smaller businesses and those with black or Hispanic owners were more likely to have used online lenders, the Fed said. “This is a pivotal moment. Fintech lenders, like Square, PayPal, BlueVine - many of these have massive install bases of U.S. customers,” said Jared Hecht, CEO of Fundera, a small business loan marketplace that is helping to funnel applications to the scheme’s participating lenders.Launched as part of a $2.
As of Wednesday evening, more than $100 billion in funds had been authorized, according to a senior administration official, although it remains unclear how much of that cash has so far made its way into the hands of small businesses. The U.S. Federal Reserve also on Thursday announced the terms of a liquidity facility for the program, saying it would dish out cash at a rate of 35 basis points, taking program loans as collateral. While that will help smaller lenders with limited balance sheets to front more loans, fintechs are not yet able to participate - although the Fed said it is looking to expand eligibility.Our Standards:
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JCPENNEY deserves support too. Refinance their debt to extend payments to a bearable level.
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