Heard on the Street: federal small business bailout and the roles of banks and online lenders

By April 6, 2020 Heard on the Street

Heard on the Street – here’s what we were reading last week:

Race is on for small business bailout: ‘I’m worried the funding is going to run out’: There is skepticism about the feds’ ability to manage a huge flow of money, as well as the lending capacity of its approved borrowers. “The current SBA delivery system is just not going to the businesses that need help the most,” Next Street’s Michael Roth said.

Thousands of U.S. banks may sit out small-business rescue plan on liability worries: sources: Thousands of U.S. banks, including some of the country’s largest lenders, have said they may not participate in the federal government’s small-business rescue program due to concerns about taking on too much legal and financial risk, five people with direct knowledge of industry discussions told Reuters.

Numerated Inundated As Banks Get Ready To Issue Small Business Loans Under CARES Act: With the federal government gearing up to issue $349 billion in loans to small businesses, online lending platform Numerated is getting inundated. The company’s platform has been powering automated small business loans for five years, enabling borrowers to get their money in days rather than weeks.

JPMorgan Announces New Diversity Push: JPMorgan Chase is increasing its efforts to diversify its work force and customer base after a Dec. 11 New York Times report showed a black customer and a black employee each struggling to gain access to the same opportunities as their white peers at the country’s largest bank.