A press release this morning outlined Small Business Borrowers’ Bill of Rights created by small business advocates and both online and offline lenders. This included many top names that readers will be familiar with including Fundera, Funding Circle and Lending Club. This comes a short time after the Treasury sent an RFI notice to participants in our industry. It seems as though we are at a turning point for our industry with government involvement and this new coalition.
I spoke to Jared Hecht (Co-founder & CEO) and Brayden McCarthy (Head of Policy & Advocacy) of Fundera to learn more about the newly created group. The major players in this industry have been talking internally for a long time about what responsible lending would mean for this space and what principles might be included. Fundera was the company that first put it in the public eye and Lending Club and Funding Circle quickly joined on. It has now grown to include Accion, Aspen Institute, MultiFunding, Opportunity Fund & Small Business Majority.
Since February of this year they have been working on this bill of rights to define what aspects should be a part of it and have come up with an aligned response. The goal of this new coalition is twofold. First, to highlight among the players that are responsible and secondly to showcase what they are doing in the lending space and how they are living by these rights. [Read more…]