House Small Business Committee Ranking Member Rep. Nydia Velázquez (D-N.Y.) today asked the Securities and Exchange Commission and the Consumer Financial Protection Bureau for information on how they regulate the online lending marketplace for small businesses.
Noting that online small business lending has doubled in size every year for the past four years, topping $14 billion in originations in 2014, Velazquez said there are fears that regulatory agencies have not kept pace. She referred to a GAO report that found overlapping jurisdiction of multiple agencies, and Treasury Department concerns about consumer protection and level playing field issues.
“I want to see this technology grow and create new opportunities for startups and small firms, but we need to be certain that there are sufficient regulatory tools in place to ensure transparency for investors and entrepreneurs alike,” Velazquez said.
