Heard on the Street: closing the financing gap for women, a new banking movement, and a rush to borrow online

By January 6, 2020 Heard on the Street

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

New Options Close the Financing Gap For Women Entrepreneurs In The Next Decade: Capital is the lifeblood of all businesses. Entrepreneurs and small business owners depend on it to start, operate, and grow their firms. Yet, there is an $87 billion gap in financing for small businesses. “We consistently see that the greatest gap is for working capital between $25,000 and $250,000,” said Marina Linhart, CEO at Next Street.

California Breathes New Life Into Public Banking Movement: A California law allowing municipalities to create public banks has given energy to lawmakers and activists around the country looking to set up their own local financial institutions in 2020. Activists in New Mexico, Pennsylvania, and at least six other states are pushing to get their lawmakers to move on legislation that would allow for public banks.

Small Businesses Rush to Borrow Online, Sparking Fears of High Rates, Costly Terms: The growth of online lending has been a boon to hair salons, bakeries and other small businesses that don’t qualify for bank credit. Yet this tech-enabled source of credit can mire some in debt they can’t repay, raising concern about inadequate regulation.

Denying a Professor Tenure, Harvard Sparks a Debate Over Ethnic Studies: Some students of color say that even as the university defends its use of race in admissions, it devalues their experiences and fails to retain professors who support them.