Heard on the Street: variable rate loans looking more attractive, shifting relationships between banks and fintechs, and how mayors can support small businesses

By June 17, 2019 Heard on the Street

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

Variable Rate Loans Become More Attractive For Small Businesses As Fed Mulls Rate Cut: Whether you are a small business owner applying for traditional bank term loans or for an SBA loan, in most cases the funding will be a variable rate loan. What bodes well at the moment is that the central bank is looking at recent economic developments closely and may “act as appropriate” to continue the current expansion.

Avidia Shows How Relationship Between Banks and Fintechs May Shift: Hudson-based Avidia Bank made a bold move last month, becoming the first community bank in the country to join The Clearing House’s real-time payments network and in the process showing how the relationship between fintechs and banks may soon start to shift.

What Mayors Can Do to Grow Young Businesses in Their Communities: Last month at the Mayor’s Conference for Entrepreneurship, 65 mayors committed to specific policies, programs, and practices that will provide support and resources to those in their communities starting a new business. Together, these cities are home to an estimated 36,000 entrepreneurs.

What It Takes to Get Capital to Immigrant and Refugee Small Business Owners: Community Advantage is part of the SBA’s flagship 7(a) Loan Guarantee Program, created in 1953. Today the 7(a) program supports loans up to $5 million, on terms up to ten years.