What new lending regulations mean for small-business owners
By OLIVIA CHEN of NerdWallet
New rules from the Small Business Administration and Consumer Financial Protection Bureau aim to expand capital access for small-business owners. The SBA is adding accredited lenders and updated lending criteria, while the CFPB is requiring additional applicant data, including demographic information such as ethnicity, race and sex. Industry leaders believe the SBA updates will grant more capital access to borrowers in underserved markets, and streamline the process. But they remain wary of a possible influx of predatory lenders. Experts believe the CFPB’s efforts to increase transparency in small-business lending will benefit small-business owners by increasing lenders’ visibility into underserved markets.
