[JayBallentine]

I guess if this works we should expect carbon copies.

KC’s micro-loan program is giving small businesses a big boost

I wonder if the impending implosion of the municipal bond market will be a catalyst.

[mfs01]

And.... it begins.....

[Sean Cash]

There's a big difference here. The interest is low, the terms are long, defaults will be high, and it won't matter since the taxpayers are on the hook for it all. Government is the king of market distortion.

"The loss rate for these loans so far has been less than 1 percent, Zimmerman said."
Yeah, that's what it is now or at least that's what they claim. Government has infinity money to burn so they play by different rules, which are no rules at all.

Imagine if merchant cash advance companies had a default guarantee of up to 80 or 90%. Rates would come down, terms would be longer, merchants would be happy, and the government and taxpayers would further bankrupt themselves. People call this progress.

[JayBallentine]

This quote intrigued me;

Owner Ken Weiner said he got a $50,000 micro-loan a few months ago, to be paid back in March, and it really helped him pay his bills on time.

That sounds like a six month deal. Another guy paid back in 60 days, then went and re-upped for a five year deal.