[Lisa@Lendio]

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?

[Dale_Laszig]

Interesting article - hope US banks proactively embrace alternative lending before we face another government mandate of financial services.

[Lendio.AS]

Totally agree. This should be something that is done because it is the right thing to do. Not because the government forces banks to do it.

[Chambo]

Interesting article - hope US banks proactively embrace alternative lending before we face another government mandate of financial services.

Two words regarding this train of thought.

BANKING REGULATION

They cannot be directly associated with lending where rates go above the Fed Rate mandate.