Category: Business Loans

Three Ways Crowdfunding Empowers Women & Minority Entrepreneurs

Minority firms were less likely to receive loans, more likely to be denied or not apply due to rejection fears, accessed lower average amounts of equity investments or internal debt plus they paid higher interest rates on the business loans when received.

Why a business loan is better than liquidating your savings

Second, business loans need not be an expensive proposition. In fact, they may be cheaper than personal loans and you can get avail of a variety of business loans at attractive interest rates. Third, retaining your savings and opting for a business

Closing the Racial Gap in Small Business Lending

Besides fewer sources of capital from friends and family, that also means fewer assets to use as collateral for business loans from banks and other institutions. Hence the continued racial disparity in access to capital for minority-owned businesses. Small Business Administration (SBA) loans to African-American borrowers declined 47 percent between 2009 and 2013, even as overall SBA loan volume rose around 25 percent.

VEDC, a Los Angeles-based community development financial institution (CDFI), is betting a combination of creativity and intentionality can help drive racial equity in small business lending despite the racial wealth gap. They recently partnered with JPMorgan Chase to launch a $30 million National African American Small Business Loan Fund. JPMorgan Chase provided a $3 million grant to seed the fund, and the rest will come from other sources.

We wanted to challenge ourselves to improve our African-American lending numbers,” says OC Isaac, VEDC’s vice president for national strategic initiatives.

Eligible small businesses must be at least majority-owned by African-Americans, and located in NYC, Chicago or LA Loan sizes will run from $35,000 to $250,000, and VEDC expects businesses to use the loans to expand, finance equipment, address short-term cash flow needs and provide contractor lines of credit.

VEDC facilitated $20,089,594 in loans in 2014, which created 329 new businesses, and created or retained 2,147 jobs. Around 70 percent of their clientele are minority- or women-owned businesses, and 75 percent are located in low- to moderate-income areas. Historically, they estimate 20 percent of their lending has gone to African-American-owned businesses.

“We believe we can do more. We believe we should do more,” Isaac says. “We also want to demonstrate to the marketplace that it’s not a situation of lack of demand, it’s that there isn’t a creative product suite out there that can really address the needs of this demographic.

Through the work of this fund, VEDC intends to learn what that product suite should look like, Isaac says. Based on feedback from clients and loan officers, they have been constantly tinkering with loan parameters, including minimum loan size.

I thought we were going way low with small business loans at $35,000, but we might have to go down to $25,000. There’s a need down there,” Isaac says. Staffers meet weekly to discuss such changes to the funds policies.

To make smaller loans responsibly, VEDC can take advantage of its 39-year history.

We started off as a microlender,” Isaac explains. “That really taught us what was truly important with regards to safeguarding the capital we put on the street to a high-minority borrower base.

Microloans are defined in the US as business loans below $50,000. The average microloan is $13,000. In 2013, VEDC closed 210 microloans (totaling $2 million) along with 70 small business loans (defined as loans above $50,000 — totaling $12 million).

“So it’s a quasi-microlending program within a small business lending program, which allows us to address a broader audience, one that’s more representative of the African-American business population, says Isaac.

There’s also no credit score minimum for applicants to the fund.

“We want to make sure we understand the story behind the credit situation for the entrepreneur,” Isaac says. “There’s reasons why credit might be impaired, but those reasons don’t necessarily have to render you ineligible for loan capital.

A further component to the fund is technical assistance. VEDC has developed a customizable platform that leverages technology to help clients manage their business and receive technical assistance for problem areas on a tailor-made basis. A diagnostic goes out to clients at the start of their loan to get an understanding of each business’s baseline, allowing VEDC’s advisers to be more efficient in how they provide support.

“It’s a one-on-one customized consultation process for every business that comes through the fund,” Isaac says.

The platform is essentially in beta, but Isaac says they would be open to having others use it once it’s in a more refined stage.

Really, the whole fund is a beta.

The concept really is we get a pool of 250, 300 businesses to really assess what works,” Isaac says. “We don’t know everything right now. We feel strongly about certain elements, but we’re making minor modifications all the time.

Intentionality is central. As Isaac says, We’ve done this in different ways, other shops have done this, but we feel it’s never been dealt with so directly. Hopefully it could lead to creation of other elements. We’re just one small piece in a larger system.

Loan to San Bernardino shooter draws scrutiny to online lending industry

Tom Dresslar, a department spokesman, said the investigation of the growing multibillion-dollar online lending business had been in the works for months.

But the shooting has suddenly put the industry into a harsh spotlight and raised concerns among lenders that there could be a regulatory overreaction.

Online loans give customers quick access to large amounts of cash. While credit cards can take weeks to arrive and offer an average credit line of about $5,000, an online loan from Prosper can be for as much as $35,000 and borrowers can get their money in days, not weeks.

Some online loans can offer rates significantly lower than credit cards, but others can come with rates topping 100%.

The easy credit available through the lenders has raised fears from some consumer advocates that borrowers could get trapped in unaffordable loans taken out in desperation.

The US Treasury Department this summer invited comment from lenders and the public as part of preliminary study of the industry, which could be a first step toward new regulations.

Meanwhile, the state inquiry has started with a request for records from consumer and small business lenders, including Avant, Social Finance and Kabbage, which have confirmed their involvement. Business lender OnDeck Capital and payments companies PayPal and Square, both of which offer small business loans, also are believed to have received requests but have not commented.

Industry experts are worried about the probe given that it appears the loan to Farook a county health inspector who made about $52,000 a year was run of the mill.

Beyond the Rhetoric: What happened to Black Business Loans?

During the 2000 Presidential Election, President George W. Bush made a written pledge to the National Black Chamber of Commerce® (NBCC). He claimed that he would focus on the doors leading to increasing capital access for minority businesses. To our astonishment, he delivered on that pledge while Candidate Al Gore refused to make such a pledge. That pledge began eight years of positive growth in Small Business Administration (SBA) lending.

The above activity soon began to disappear for two reasons: The effects of the subprime mortgage crisis and the lethargic activity coming out of the Obama SBA. President Obama figured the quick fix would be more and more regulation. In 2010, he signed the Dodd – Frank Amendment, which piled “mountains” of paperwork and rules onto our banking institutions. The push back was major banks began refusing to underwrite small loans, inclusive of the guaranteed SBA loans. When President Bush stepped down the SBA was doing over 8 percent in loans to Black businesses. Today, under the Obama apathy and immense regulations, the SBA is doing less than 1.8 percent in lending to Black businesses.

It got worse than this, the SBA began attacking the NBCC for letting out the news of the downward trend. They even claimed that I had no access to the percentages of loans, because no one tracks them. To my surprise, George Curry, who was editor of the National Newspaper Publishing Association took their “bait” and began believing them over the NBCC. Finally, after a White investigative reporter from the Wall Street Journal confirmed my allegations, George came around.

According to the Valley Economic Development Center, “SBA loans to African-Americans declined 47 percent between 2009 and 2013, even as overall SBA loan volume rose roughly 25 percent during the same period.” Doesn’t this paint the picture?

The subprime mortgage crisis devastated the net worth of Black families. That net worth was based on equity in our homes. The homes have disappeared in many of our communities and with it went the equity, which made new entrepreneurs bankable. The biggest players in the mortgage business were Fannie Mae and Freddie Mac. These two government-sponsored enterprises are now “owned” by the Obama Administration as he virtually “seized” them as they approach bankruptcy. Will they bounce back? That is doubtful as right now the Obama Administration is trying to liquidate the two firms. We are fighting against this effort.

The above should be a hot topic during the presidential debates but so far there has been no traction. We are going to bang the “drums” much harder for it to become a major political issue. Despite the lack of financial activity, African – American firms offer a direct path to job opportunities. Our restaurants, service providers, IT shops, construction companies, etc. are the key to our growth and financial gain. The lifeblood for these companies is upstart capital and that necessity is fading under the current Administration and it is paramount that the next Administration will address it with a vengeance.

CBA set to refer small business loans

Small-business lender On Deck Capital Inc. will receive customer referrals from Commonwealth Bank of Australia, the continents largest lender, under a partnership starting early next year.

Commonwealth Bank will identify and send suitable small businesses to On Deck for loans, the Sydney-based company said in an e-mailed statement. The New York-based startup has carved a niche of offering credit quickly.

This is the second major partnership this month for On Deck, which sold shares to the public last year. JPMorgan Chase amp; Co. said Dec. 1 that it wanted to speed the process of providing loans to some of its 4 million small-business customers through an arrangement with the startup. On Decks stock surged 28 percent the next day.

More large financial firms are working with online startups that were set up less than a decade ago to bypass banks by matching borrowers with individuals who wanted to fund them. While some banks use the platforms to make loans cheaper and faster, others just make the ventures products available to their customers.

Our goal is to provide an alternative lending solution for small businesses, and we believe these partnerships will help us reach and serve them, On Deck Chief Executive Officer Noah Breslow said in an e-mailed statement. On Deck closed at $9.42 a share in New York on Wednesday.

The partnership provides an opportunity to meet more of our small business customer needs, Clive van Horen, Commonwealth Banks head of small business and retail banking services, said in the statement.


Long and Short Business Term Loans

Meet every need, and achieve every goal with help from a SunTrust business long and short term loan. As the most basic way to finance your company’s growth, business term loans are an effective solution for small, financially sound businesses to fund specific projects and initiatives.

Whether you need a business equipment loan, want to expand your facility or acquire more assets, our business bankers will work with you to provide the best rate options and help you decide whether a long term or short business term loan is best for getting your business where you want it to be.

With long term and intermediate term business loans, you’ll need collateral for the loan. Your company’s equipment can be used as such. But no matter which way you decide to go, you’ll benefit from permanent working capital and enjoy business growth.

Business Loans Affiliate Program Featuring High Payouts Now Live On Popular …

New Brunswick, NJ A new, unique high-paying small business loans affiliate program offering high commissions to both online marketing professionals, as well as referral partners, is now offered on, a rapidly growing popular online lending platform, see here The program is unique in many ways including offering commission payments per generated qualified lead as well as payments for closed fundings. Also, a unique and unprecedented lifetime cookie, an affiliate marketing term referring to a means of online tracking, is offered setting this program far apart from most other affiliate programs in the industry.

The online lending platform connects flexible alternative financing lenders with business owners across the United States. The lenders available through the BizCapRX online system offer a diverse number of working capital financing options for small businesses and are filling a void left by well-publicized bank cutbacks in lending to small business borrowers.

The BizCapRX affiliate program is especially popular with professional online affiliate marketers as well as accountants, financial planners, lawyers and other professionals who can become referral partners or distributors.

Small businesses can apply for small business loans of up to $2 million using the BizCapRX online platform. Most industry types can qualify for funding using the service provided the business has been operational for twelve months or more. There are over 750 business industry categories that can successfully be accepted for funding including restaurants, beauty shops, bars and nightclubs, auto repair shops, retail stores, dentists, health services, grocery stores, transportation companies, chiropractic offices, child day care services, physical fitness facilities, special trade contractors such as plumbers and electricians, liquor stores and more. Online funding sources are becoming a welcomed financing alternative for thousands of small businesses owners across the United States. And, is emerging as a favorite in this space, as its popularity and online presence grows.

To learn more about the affiliate programs, referral program or distributorships visit where more information can be found on the company website.

Business owners seeking small business loans can get more information at

About is an automated online small business loan resource platform connecting small business owners with lenders. serves small business owners from all 50 states in over 750 industries and is based in New Brunswick, NJ.

Disclaimer/Disclosure provides an online small business finance referral-marketing platform affiliated with one or more specialty online alternative financing companies. These companies, and not, provide funding to businesses in the form of traditional small business loans, working capital loans, unsecured loans, revenue based loans, factoring as well as other alternative forms of financing as determined and offered by these 3rd party financing companies. is not a lender or funder and does not make credit decisions or funding decisions, does not interact with clients, and functions strictly as a marketing referral agent for 3rd party funding companies.

Media Contact
Company Name: BizCapRX
Contact Person: Chuck Sanderson
Country: United States

Source: ABNewswire