Lawmakers Back Fintechs Making SBA Loans

Senators Tim Scott, R-S.C., and John Hickenlooper, R-Colo., and Reps. Jason Crow, D-Colo., and Byron Donalds, R-Fla., urged Small Business Administrator Isabella Guzman to lift the moratorium on allowing financial technology firms to serve as small business lending companies and to include them under its flagship small business loan program.

"Affordable access to capital is crucial for entrepreneurs and small businesses to succeed in starting, and growing their businesses. However, many entrepreneurs and small firms, especially women, minorities, and those living in rural areas, struggle to access the traditional banking system," the lawmakers wrote in a letter.

The lawmakers suggested that fintechs were able to provide pandemic-era relief programs to a wider audience since traditional banks could only serve their existing customers initially.

Source: S&P Global Market Intelligence