In a recent Forbes column, the CEO of Lendio, posed the question: “Should the SBA Make Room for Alternative Lenders?” His argument was that banks aren’t the only place small businesses can go for capital anymore and that alternative lenders have a “big role to play in the future of small business lending.”
About the Author
Ami Kassar founded MultiFunding LLC, based near Philadelphia, which helps small businesses around the country find sources of financing. (MultiFunding at times accepts fees from lenders that agree to make loans.)
But in my opinion, the U.S. Small Business Administration — a government agency supported by taxpayer funds — and alternative lenders — private lenders that take on higher risk loans in exchange for higher rates — are opposite by definition. Thus, the idea that the SBA would guarantee loans by alternative lenders is akin to the great apples-versus-oranges debate. It’s not a realistic or intelligent scenario to hope for.
via Why the SBA Won’t Partner With Alternative Lenders – WSJ.com.