Family-owned businesses, especially those crossing the mark of $10 million in annual revenue, often have unique banking needs. They have the freedom to make long-term investments, but they also face challenges associated with funding for growth, complex family dynamics and the need to manage liquidity events for family members.
Many fintech firms’ offerings are narrow, leaving them unable to meet growing businesses’ capital needs. In contrast, most banks can work with businesses as they grow.
“Often, economic change occurs at this level of the economy,” says Umpqua Bank EVP Richard Cabrera about the middle market of the commercial sector. “While economic concerns still linger, there’s tremendous optimism.”
Small-business owners’ concerns about the health of their bank have eased significantly in recent months, with more than half saying they are not concerned at all, according to a new survey of small-business attitudes about banking by the National Federation of Independent Business.
In the wake of a judge’s order delaying compliance dates with the CFPB’s Section 1071 final rule for Texas Bankers Association and ABA members, TBA and ABA today asked CFPB Director Rohit Chopra to use his discretion to apply the stay to all FDIC-insured banks.
Another indication of significant challenges ahead is the 888-page final rule’s frequent use of a version of the term “reasonably designed procedures”—175 times.
A federal judge in Texas today issued an order blocking enforcement of the Consumer Financial Protection Bureau’s Section 1071 final rule while the Supreme Court hears a challenge to the constitutionality of the CFPB’s funding structure.
Special-purpose credit programs build on data sharing to expand lending outreach.
ABA and five other bank and credit union trade associations expressed appreciation for Senate legislation rolling back recent policy changes made to the 7(a) loan program by the Small Business Administration.
Rising costs and higher interest rates highlight the increased importance of small-business access to capital. Fintech firms might have faster approval processes, but highly regulated bank options and programs coordinated with the SBA provide more flexibility at competitive rates.