New Senate Bill Would Enable Fintech Lenders to Participate in SBA Program

A new Senate proposal circulating yesterday would allow the Treasury and the Small Business Administration to enable fintech lenders as well as banks to offer “small business interruption loans”, so called 7(a) loans; the proposal would add another $300 billion to the SBA’s budget to fund the loans and it would increase the maximum size of 7(a) loans to $10 million; it would also expand the pool of those eligible for small business loans to those with 500 employees or fewer; borrowers would have to use the funds for paid leave, salaries, rent and mortgage payments, and other business expenditures; Funding Circle could be one of the beneficiaries here, they have seen record loan demand this week; Ryan Metcalf, the company’s head of regulatory affairs said that Funding Circle would be able to lend $250 million a month if the federal government allows the company to join the small business interruption loan program proposed in the Senate Republican bill. Bloomberg Law

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