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Coleman C-Suite Small Business Lending Report — SBLC, CFBP and IDAP

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By Bob Coleman
Editor, C-Suite

Three stories in today’s alphabet soup edition!
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First, Small Business Capital’s SBLC license is back on the market after BusinessUS’ purchase was nixed by SBA.

The Receiver has announced the deadline for the new round of bids is July 27th.
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Robert Villarreal of CDC Small BUsiness Finance disagrees with my position about CFBP’s proposed collection of small business loan turndown data.

Bob – thanks for today’s report and for highlighting a colleague that does great work. However, great organizations like VEDC, Opportunity Fund and my organization, CDC Small Business Finance, cannot come close to meeting the needs of disenfranchised minority-owned small businesses.

We need the CFBP to implement the regulations.

Look how powerful having HMDA data was in transforming the mortgage lending industry. SBA lending is the only lending that is allowed to collect “demographic” information, yet it is a very small percentage of overall small business lending.

No one truly knows the turndown rate for minority small businesses, but we believe it is high. And even one of your reports last year (6/30/14) demonstrated continued insidious discriminatory lending practices in the industry.

Data is powerful and we need the data on small business lending to communities of color to correct practices and improve access to capital for the communities.

Yes, we encourage innovative partnerships like the one between UBS and VEDC, but we also need the CFPB to do its job.
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Finally, I did a poor job of soliciting feedback about SBA’s proposed disaster bridge loan program.

Please take 5 seconds to answer these three poll questions I buried in yesterday’s report.

Would you participate in IDAP as outlined?

Yes
No

Would you participate in IDAP if you were confident the guaranty would be honored under the proposed terms?

Yes
No

What changes would your institution need in order to be willing to participate in IDAP?

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