I am going to Washington this morning to meet with Senators and discuss the pending legislation to open SBA lending to Fintech lenders.
Our purpose at MultiFunding is to do everything we can to ensure that entrepreneurs have every opportunity to succeed.
Almost every entrepreneur I know has hit various cash flow crises along their journey. When you hit these walls, an entire industry is ready to put cash into your bank account in 24 – 48 hours. Sound appealing? The devil in the detail is that the APR on these loans could be as high as 200%, putting companies into a debt trap. There is almost invariably a better way.
Making lenders like these stewards of the SBA, backed by taxpayers, is a big mistake. And my team will do our part to try and stop it.
Thanks for going to try to talk some sense into this mess. Given that this was the headline on NPR yesterday: "A congressional report says financial technology companies fueled rampant PPP fraud", I can't believe that congress is even considering this.
While most business owners say they need more cash, my sense is that sometimes more cash is just a way to prolong the pain before systemic changes inside the business become the right answer.