Many small-business lending programs rely on payment records for decisioning. To provide small businesses the funds and resources they need to recover from one of the most challenging years in history, lenders should be prepared to act quickly and decisively, leveraging the power of technology, innovative lending approaches, low interest rates and renewed commitment to small-business funding to maintain the health and vibrancy of our small-business communities.
According to the Federal Reserve, near-zero interest rates
By meeting the small-business need for short-term capital today, lenders can be better positioned for future opportunities and revenue streams that will continue to produce profits through 2023 and beyond.
Small-business success is an important priority for the incoming Biden administration, bringing benefits to small-business owners and lenders alike. Moving into 2021, we can expect a number of meaningful initiatives designed to breathe new life into small- business stability as the pandemic rages on.
The Biden administration plans to expand access to $100 billion in low-interest business loans by funding state, local, tribal and nonprofit lending programs in Black and brown communities and strengthening community development financial institutions, minority depository institutions and the Community Reinvestment Act.
In addition, the administration plans to overhaul the Paycheck Protection Program to help small businesses obtain relief quickly and easily and expand lending through the expanded Small Business Opportunity Fund. These collective efforts will help small businesses, particularly those owned by Black and brown people, stay afloat during continued uncertainty.
