This Week in Small Business Lending

small business lending topics

Small business—specifically small business lending—is always under the microscope of the local and national media. Now that 2013 is over and 2014 is here, many outlets are giving their takes on the current status of small businesses and small business financing in the U.S. Specifically, the media is asking questions such as “Was 2013 a good, bad or neutral year for lending?” and “Will 2014 be better or worse?” Many notable outlets have been offering their opinions, and we’ve compiled some news stories for you to check out.

PayPal steps up small business lending via San Jose Mercury News: PayPal recently announced that 90,000 of its U.S. merchants will now be able to borrow a certain percent of PayPal’s yearly revenue, up to $20,000 through their “Working Capital” pilot program. PayPal’s new initiative is breaking ground in the alternative lending industry. The program is not as stringent as a bank loan in that there are no hard “repayment deadlines, late fees, or credit checks.” It’s very interesting that PayPal has decided to dip their feet into the realm of business lending and we’re excited to see whether their new efforts are successful.

Small business lending: One size does not fit all via Forbes: An opinion article, the author puts forth a viewpoint that it’s folly to look at small business lending in absolutes. Specifically, he believes that funding becomes an “either/or” dilemma, usually between traditional financing, alternative financing, or venture capital. The author goes into discussing the problems business owners run into with traditional and alternative financing and whether or not these are viable solutions moving forward in 2014 and beyond.

Why the big banks are lending to small businesses via Fox Business: The author offers an optimistic viewpoint of small business loans heading into 2014. The author states that business lending is on the rise because non-SBA loans by big banks are increasing. The improvement of the economy, less paperwork and fast approvals are among the reasons he lists for the growth in non-SBA loans.

For more information small business lending the climate for businesses in the U.S., continue to check back to our blog!