The scene at the American Banker Small Biz Banking conference last week in Nashville was almost like a Western movie. U.K.-based Funding Circle, a newly approved fintech lender for the Small Business Administration, arrived in town and announced to the bankers in the audience that they planned to be the biggest lender of SBA loans under $500,000 within a year.
What is Funding Circle’s plan? My sources tell me that Funding Circle representatives announced that because they won’t have to follow the traditional rules and regulations other SBA lenders still have to follow, they will execute loans in as little as two days because many traditional regulations and forms for SBA lending are no longer required. For banks who must continue to play by the rules of their organizations, loans will be more cumbersome and take longer to close.
Are you interested in learning more? Click here to read more in my 21 Hats column today.
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