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FEDERALhearing transcript

Hearing on Online Lending and Small Business Capital Access

Original title: FINANCING THROUGH FINTECH: ONLINE LENDING'S ROLE IN IMPROVING SMALL- BUSINESS CAPITAL ACCESS

January 1, 2018

small businessfintechonline lendingcapital accessbanking regulation

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The Frame

What this does

This hearing explores the shift in how small businesses secure funding, specifically examining the role of online lenders in providing capital as traditional community bank numbers decline.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

Small business owners

They are the primary users of online lending services to obtain capital for operations and expansion.

Community banks

They are experiencing a decline in numbers and facing competition from new online lending business models.

Online lending companies

They are the entities providing the alternative capital and are the subject of the regulatory and market analysis discussed.

What changed

Last recorded activity January 1, 2018.

What's next

Next step not available in the current record.

Summary

The House Subcommittee on Economic Growth, Tax, and held a hearing to examine how online lending platforms are filling the credit gap for small businesses. The discussion focused on the growth of the industry as an alternative to traditional community banking.

Key Facts

  • The hearing was held on October 26, 2017, by the Subcommittee on Economic Growth, Tax, and Capital Access.
  • Online lenders originated an estimated $5 billion to $7 billion in small business loans in 2015.
  • The online lending industry is projected to grow to a $50 billion industry by 2020.
  • The number of community banks in the United States has declined in recent years.
  • Online lending is characterized by smaller loan amounts and faster approval and funding times compared to traditional banking.

Frequently Asked Questions

What is the purpose of this hearing?
To assess how online lending platforms () are providing capital to small businesses as an alternative to traditional community banks.
Why are small businesses turning to online lenders?
According to the Chairman, the decline in the number of community banks and the impact of regulations like have made it more difficult for small businesses to obtain loans through traditional means.

Why It Matters

This hearing explores the shift in how small businesses secure funding, specifically examining the role of online lenders in providing capital as traditional community bank numbers decline.

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Sponsors

Discoveries

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift90% confidence

Shift in Small Business Lending

The hearing highlights a clear transition from traditional community banking to digital-first lending models for small business capital.

Committee on Small Business

Connected Entities

personWilliam Phelan“Witness, President and Co-Founder of PayNet, Inc.”Map →
personDwight Evans“Ranking Member of the Subcommittee”Map →
personTrevor Dryer“Witness, CEO of Mirador”Map →
personKatherine Fisher“Witness, Partner at Hudson Cook”Map →
personDave Brat“Chairman of the Subcommittee on Economic Growth, Tax, and Capital Access”Map →
organizationCommittee on Small Business“House of Representatives committee overseeing the hearing”Map →

Sources

Open source document

www.govinfo.gov

Analysis Score

0–100
  • Significance60
    How much this matters to a regular citizen
  • Controversy30
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz15
    Current news / social attention level

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