If you’ve been looking for financing for your small business, you’ve most likely considered taking out a loan. Unfortunately, most banks view small businesses as a risky investment, but one way to boost your chances to secure a loan is to understand what lenders will analyze when considering your application. Lenders use the 5 C’s of credit to measure your “creditworthiness” and your ability to repay a loan.
Timely information on small business financing needs, decisions and outcomes is critical to understanding and fostering the sector’s health and growth.
To provide these insights to policymakers, researchers and service providers, the Small Business Credit Survey is a national collaboration among the 12 Reserve Banks of the Federal Reserve System. In 2016, it yielded 10,303 responses from small businesses with employees, or employer firms across the country.
The Philadelphia Capital Consortium, an initiative of the Philadelphia Department of Commerce, was launched last summer to help improve access to capital for small businesses throughout Philadelphia. The consortium is taking an innovative approach to getting capital into the hands of small business owners. Read more here.
Business lending is fundamentally different from consumer lending, and regulations should not treat them similarly, a bipartisan group of 20 House members told Treasury Secretary Jack Lew in a letter yesterday. Led by Reps. Randy Neugebauer (R-Texas) and Lacy Clay (D-Mo.), the lawmakers cautioned the Treasury Department not to make any recommendations that would stifle small business credit.
The US Department of Treasury has announced its intent to release a white paper next week pertaining to their review of the marketplace lending industry (orginally labeled peer to peer lending). The document is expected to encapsulate the many comment letters submitted to Treasury following their initial “Request for Information” (RFI) in July of 2015. Treasury followed up the request with a gathering of over 80 industry participants in August of 2015 that included an “impromptu” visit by Secretary of the Treasury Jack Lew who gave a brief “supportive” speech.