Following months of behind-the-scenes work with OnDeck Capital, JPMorgan Chase has quietly started offering online loans to its existing small-business customers.
The New York megabank launched its digital lending platform on a limited basis last week, spokeswoman MaryJane Rogers confirmed Monday.
Existing Chase small-business customers are being prescreened, and some of them are being invited to apply for loans of up to $250,000, according to Brian Geary, director of platform solutions at OnDeck.
JPMorgan has roughly 4 million small-business customers. The bank declined to say how many of those clients have received invitations to apply for a loan, or when its online lending platform will be opened to a broader group of prospective applicants.
Under the partnership, New York-based OnDeck, which also offers small-business loans through its own website, is providing its technology to JPMorgan. The loans are Chase-branded, and are being held on the bank’s balance sheet. JPMorgan is also setting the underwriting criteria for the loans.
See more at http://www.americanbanker.com/news/marketplace-lending/chase-quietly-launches-its-online-small-business-loan-platform-1080382-1.html
Financing small business ventures have always been a challenge for small business owners. Those challenged particularly are African American entrepreneurs, who are continuously challenged by inconsistent incomes and less than perfect credit.
According to an analysis by the Wall Street Journal, the total volume of loans black-owned small businesses received before the recession is 8.2 percent of all loan money from the Small Business Administration (SBA). That figure declined since that time to 1.7 percent. Other groups have fared much better. For instance, Hispanic businesses are getting 4.7 percent of total loan volume. According to the same source, about 7 percent of American business owners are black compared to 10 percent for Hispanics. What these entrepreneurs have had to do is find alternative sources of working capital. One such company is PayPal Working Capital (PPWC).
PayPal CEO Dan Schulman announced that PPWC has provided more than $1 Billion in funding in the US, UK, and Australia. They have assisted more than 60,000 small businesses owners. Schulman also said, “since late 2013 we’ve been providing access to working capital to small businesses through PayPal Working Capital. PayPal is now lending $100 million per month to businesses.”
Full article here: http://financialjuneteenth.com/paypal-pays-out-1-billion-in-small-business-loans
As fewer and fewer Americans are able to achieve the dream of owning their home or starting their own business, their tax dollars are going to newly-arrived refugees, many of them unvetted for ties to terrorism, who may be coming America for the economic benefits, rather than to escape the chaos in the Middle East.
The International Rescue Committee (IRC), which provides refugees with start-up loans for new businesses, has announced that it will be expanding its microloan program now that it has been accredited by the United States Department of the Treasury.
The IRC is one of nine nonprofit organizations that participate in federal programs to assist with what the federal government terms “refugee resettlement”