Last week I saw quite a few news stories on this subject. The British government is forcing their banks to refer small business owners to online lenders if they could not fund them. They gave two reasons why:

1. Improve the Economy: Small businesses are closing because of lack of funds, impacting the economy.
2. Increase Competition with Banks: In England 4 banks control 90% of small business lending.

Here is a bit more on the story: UK Forces Banks to Work With Alternative Lenders. Is the US next?