us TechFIN pushES for small business bailout

As lawmakers working on a stimulus bill, US TechFin lenders have commenced lobbying the US government to part of the federal stimulus plan for businesses hurting from the coronavirus slowdown. 

On Friday 19 March, in response to the COVID-19 economic crisis, Financial Innovation Now (FIN) called on Congress to help small businesses immediately by using alternative lenders to help distribute loans digitally. There is a concern that many small businesses will run out of working capital in less than three weeks. This concern is driven by (1) these businesses not being well served by traditional financial institutions and (2) will not benefit from existing federal small business loan programs soon enough. FIN sent a letter to Congress on Friday asking that its members be included in any emergency U.S. government funding. 

“Small businesses are not well served by traditional financial institutions, nor will existing federal small business loan programs deliver funds soon enough,” the letter reads. “Any federal small business loan program must leverage digital advances in the marketplace to ensure that stimulus can reach those business most in need.” wrote Brian Peters, FIN's Chief Executive.

Mr Peters' letter adds that "FIN companies alone have made over $10 billion available in the past several years. Alternative online lenders have the reach, relationships, and digital capabilities to reach those businesses most vulnerable – right now."

 Source: hhttps://financialinnovationnow.org/news/ and https://www.cnbc.com/2020/03/23/tech-lenders-push-for-a-piece-of-the-coronavirus-bailout.html 

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Posted by Peter Oakes (www.peteroakes.com / Twitter @oakeslaw @US_Fintech @FintechUK_HQ @FintechIreland)
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