In Partnership With Accion:
Roundtable Discussion: State of Small Business Online Lending and the Impact of Predatory Lending
The traditional banking market is being disrupted by the rise of alternative lenders and new online lending platforms. On October 24, 2017, MGCC in collaboration with Accion brought small business financial experts together to share expertise, ideas, opportunities and concerns of the rapidly changing small business lending arena.
The key objectives from this roundtable included:
- Understanding the changing small business lending marketplace and how it affects community development lenders and the small businesses they serve
- Identify how CDFI’s could take advantage of this new technology oriented lending approach without negatively impacting small businesses
- Recognize how innovations in small business lending can be harnesses to better serve small business borrowers and enhance community and economic development
- Learn how this online business model could be an expressway for predatory lending and what should be done to protect targeted small businesses
- Learn how some of our community and economic development organizations are educating their borrowers on regards to online lending and predatory lending
- Learn about how online lending is currently regulated and implications for the small business sector
In addition to the roundtable discussion, two presentations two presentations were conducted. First, Accion East conducted a presentation about the influx of alternative lenders that are becoming more prevalent and some of the cautions and pitfalls small businesses need to educate themselves about before committing to these types of loans.
Secondly, the Federal Reserve Board of Governors presented an overview of the changing small business lending landscape.
MGCC continues to research the changes occurring in the small business lending marketplace and discover ways in which these changes can be used to better serve small business borrowers.