Photo Credit: Nav
HONOLULU, HI (April 24, 2018) excerpt via NAV - Hawaii has the highest average credit score of any state in the US, according to a new study.
The state averages 54.6 on the 1 to 100 scale used in business credit scoring. Washington, Illinois, Oregon, West Virginia, Arizona, Alabama, Ohio, Virginia and Michigan closely followed Hawaii in the rankings for top ten.
CLARKSBURG, WV (April 23, 2018) excerpt via WVNEWS - Small businesses are the backbone of West Virginia’s economy, accounting for 99% of all businesses in the state and employing half of the state’s private workforce, according to the Small Business Administration.
“Everybody thinks it would be so great if we had a factory come in that would employ 400 people, but it’s a lot better if you have 40 businesses that employ 10 people. You’ve got the same result, but you’ve got a much more diverse economy that’s better able to withstand downturns and problems that come along,” business owner Tom Hart said to WV News. “Small businesses are extremely, extremely important.”
HOLLAND, MI (April 20, 2018) excerpt via THE WASHINGTON POST - Holland, Michigan was determined to be the best city in America for starting a business in a study by WalletHub.
An algorithm accounting for small business growth, small business revenue, hours per workweek, commute time, higher education assets and other factors was used to decide the winner.
“I have seen tremendous support for small-town businesses from local leaders, schools and residents,” Michael Glauser, executive director of the Center for Entrepreneurship at the Huntsman School of Business, said to The Washington Post. “One small business owner I know has a store in a small town and one in a large town. He gets far more support and stronger sales in his small-town operation. People want him to succeed and stick around.”
Other cities ranked highest in specific categories. St. Cloud, Minnesota; Pine Bluff, Arkansas; and Muncie, Indiana were ranked highest for cities with the most accessible business financing. The cities with the highest average growth in small businesses were New Iberia, Louisiana; Warner Robins, Georgia; and Gulfport, Mississippi.
CLEVELAND, OH (April 19, 2018) excerpt via CRAIN'S CLEVELAND BUSINESS - Ten organizations in Cleveland have coordinated to establish a coalition supporting growth initiatives for minority business owners, known as the Business Growth Collaborative.
"At its core, the BGC is about putting the needs of diverse entrepreneurs and small business owners first," said Cathy Belk, president of JumpStart Inc. "Each organization in the BGC has their own unique strengths and ways of doing things — but the best way to help the people we all serve get the knowledge and support they need is to work together whenever and wherever possible."
PHILADELPHIA, PA (April 17, 2018) excerpt via THE PHILADELPHIA TRIBUNE - Developing minority-owned small businesses could diminish the income gap, according to Marc H. Morial, president of the National Urban League.
“While white adults have 13 times the wealth of Black adults, the gap between white and Black business owners is only three to one. The median net worth for Black business owners is 12 times higher than Black non-business owners,” Morial wrote.
The National Urban League is partnering with Goldman Sachs 10,000 Small Businesses to provide access to business support services and foster growth.
“‘Histories of the civil rights movement that emphasize the glory and successes of charismatic leaders only tell part of the story,” said historian Louis Ferleger in The Philadelphia Tribune. “‘Small Black-owned businesses were critical because they were empowered to engage in civic participation. These businesses were uniquely situated to support the civil rights movement and also parted the waters.’”
NEW YORK, NY (April 16, 2018) excerpt via FORBES - Female entrepreneurs face formidable challenges in starting a business and securing financing. Despite these extra hurdles, women-owned businesses are growing rapidly.
From 2002 to 2012, the number of women-owned businesses grew at 2.5 times the national average, and employment in women-owned businesses increased at 4.5 times the average rate, according to the US Census Bureau.
Forbes presents an interview Carla Harris, President of the National Women’s Business Council, offering advice and support to women business owners.
NEW YORK, NY (April 12, 2018) excerpt via ENTREPRENEUR - Online lenders are facing increased scrutiny as lawsuits and investigations uncover the sky-high interest rates, hidden fees and unsustainable repayment plans that can devastate small businesses.
Mark Abell reports in Entrepreneur that online lender Kabbage Inc. is being sued for allegedly partnering with a bank to offer interest rates that surpass the legal limit.
The state of New York may begin regulating online lenders after a Federal Reserve study determined that there was “significant potential for unscrupulous online lenders to exploit consumers through predatory practices such as unusually high interest rates, lack of disclosure of hidden fees, and unclear loan terms.”
BIRMINGHAM, AL (April 9, 2018) excerpt via ALABAMA NEWSCENTER - Expectations for growth are high for small business owners in Alabama, according to the PNC Financial Services Group Inc’s Spring 2018 Economic Outlook survey.
“The Alabama economy is doing really, really well,” PNC chief economist Gus Faucher told Alabama Newscenter, remarking that it currently matches or surpasses national trends from the second-longest era of economic advancement in US history.
BOSTON, MA (April 6, 2018) excerpt via THE HEIGHTS - Boston Public Market’s open house March 20 featured over 35 local vendors offering a variety of local food, beverages and household items.
“Our mission here is to support local small businesses, local agriculture, and to really educate the public about nutrition and health and wellness,” communications director Amanda Campbell told The Heights.
The market itself is a nonprofit organization promoting small businesses throughout New England and providing Bostonians a chance to enjoy unique, locally-sourced food and gifts.
NEW YORK, NY (April 4, 2018) excerpt via FORBES - The world of small business lending can be mystifying and immensely frustrating to entrepreneurs, with copious misinformation from predatory online lenders and questionable sources.
Levi King at Forbes presents a guide to dispelling common misunderstandings about business loans, and what it takes to qualify for one. He describes his dismay at the proliferation of misleading online articles, “perpetuating business credit myths and misconceptions that cost me thousands of dollars when I was starting my own small business. This bad advice is continuing to cost American entrepreneurs millions of dollars each year -- and, for many of them, their dream.”
King additionally reports that only 46% of business owners are satisfied with loans from online lenders, according to a study by the Federal Reserve Bank of New York, illustrating the significant problems that come with the convenient but predatory online lenders.
NEW YORK, NY (April 2, 2018) - The gender gap in business lending is growing, according to the State of Women-Owned Small Business Finance Study.
“Last year the average funded business loan for women-owned firms was $57,097, down from more than $99,000 in 2016,” CNBC reports. “In comparison, the average size of a business loan for male entrepreneurs was stable, at $103,604.”
This trend is worrisome for the growth of women-owned businesses, which have historically been underserved by lenders.
NEW YORK, NY (March 27, 2018) excerpt via THE FINANCIAL BRAND - Community banks are the most desirable source of financing for business owners, with significantly lower costs and greater transparency than the proliferation of predatory online lenders. However, the lengthy loan application process and challenge of bringing in new clients have held small banks back from serving more of the small business community.
The future for small business lending blends the best of both worlds - community banking and technology. Neill LeCorgne at The Financial Brand writes:
New technology innovations are available that eliminate data entry by scanning in tax returns, automate the spreading of financial data in minutes, price loans faster and more consistently, and score a loan using customized credit factors. What used to take days and weeks to approve and onboard a small business loan can now take organizations hours (or minutes), making quicker decisions available to borrowers who are eager to move forward.
Not only can deploying technology make the process more efficient for bankers and therefore quicker for borrowers – automation of certain steps in the process can also provide a more simplified, enjoyable experience for borrowers.
GREENSBORO, NC (March 22, 2018) - After the Great Recession of 2008 and subsequent trend of bank consolidation, North Carolina is now seeing a wave of new community banks sprouting up.
“It is that time in the life cycle of community banks that many of the community banks have merged with other larger organizations, leaving business and community leaders desirous of a local bank with local decision-makers,” Lee Burrows Jr of Banks Street Partners of Atlanta says. “Banks that carve out a particular niche or expertise and utilize cutting-edge technology stand a greater chance to succeed.”
NEW YORK, NY (March 21, 2018) - Blockchain technology could prove to be a game-changer for small business owners in their everyday activities.
With blocks of tamper-proof data, blockchain can validate identity, products, and the entire supply chain for a business, as well as storing digital assets and protecting intellectual property. Business owners can streamline operations with sending money, tracking shipments, and utilizing self-executing smart contracts.
BOCA RATON, FLORIDA (March 19, 2018) - Businesses that take out business loans from banks have higher rates of success, a new study at Florida Atlantic University found.
The survey of 5,000 businesses determined that companies that took out bank loans reported nearly twice as much revenue as companies that did not pursue financing. Companies financed by personal loans had 57% less revenue than companies financed by business loans from banks.
NEW YORK, NY (March 14, 2018) - Good news for business owners: Loan officers reported loosening standards for business loans in 2017, according to a survey by the Federal Reserve.
NEW YORK, NY (February 23, 2018) - Optimism is reaching new heights in the small business world, with 32% of business owners saying that now is a good time to expand - a higher number than all quarterly readings since 1973, according to a new survey by the National Federation of Independent Business.
29% of business owners plan to increase capital spending and 20% plan to hire employees, the survey reports.
NEW YORK, NY (February 22, 2018) - Consolidation in the banking industry may reap rewards for investors, but it also restricts access to financial services for many communities throughout the United States.
Community banks support many geographic areas underserved by larger banks; more than 16 million people, or one in three counties, rely exclusively on local banks and have no physical access to large banks, according to American Banker. Local banks fund over 60% of small business loans, while holding only 20% of all banking assets.
“Community banks are not only more highly capitalized than larger institutions and therefore better equipped for economic downturns, but their local focus and accountability make them distinctly pro-consumer. These local institutions operate a relationship-based business model that incentivizes customer service and stewardship... [they] reinvest their proceeds into the communities in which they operate, promoting economic growth that begins at the local level,” American Banker reports.
NEW YORK, NY (February 21, 2018) - Recent immigrants to the United States face an enormous hurdle to building a new life: a nonexistent credit history.
Credit cards, bank loans, cars and real estate all require a solid credit score, and yet immigrants arrive with a blank slate in the American credit score system, regardless of their financial history abroad.
“You could be a billionaire in Australia, come over here and try to apply for a credit card. You're probably going to get rejected if you have no credit footprint in this country,” says Lend Academy founder Peter Renton.
A number of FinTech companies have evolved to serve this overlooked market and maximize opportunities for foreigners to contribute to the American economy. Nova Credit estimates that 10 million immigrants in the past decade would be categorized as prime to super prime if their international credit records were accessible.
CHICAGO, IL (February 20, 2018) - Community lenders are increasingly finding success in blending the speed and efficiency of financial technology with the personal connection and attention of community banks, according to a new article in American Banker.
"Small-business owners typically want to do business with local financial institutions. At the same time, they don’t want to subject themselves to a longer and clunkier process,” Joel Pruis of Cornerstone Advisors says. Small business owners are “on the go and like to do things digitally, but they also like to have that face-to-face option as well.”
Chicago’s Marquette Bank successfully digitized its lending process and saw its credit memo creation time shorten by 25%.
Largest network of funding sources and resources for entrepreneurs, startups, businesses, nonprofits, social ventures, and community organizations.
What are people saying?
