The Federal Trade Commission hosted a forum on small business financing on May 8, 2019, to examine trends and consumer protection issues in this marketplace, including the recent proliferation of online loans and alternative financing products.
Small businesses are an integral part of the U.S. economy, and they often need financing in order to operate and grow. While some business owners can secure loans from banks or other traditional lenders, many businesses must turn to alternative sources for capital. In recent years, the online marketplace for small business financing has offered a wide variety of products, including term loans, lines of credit, and cash advances. Though some options may provide unique benefits, such as quicker access to capital, some of these products also raise consumer protection concerns, like high costs and potentially unclear terms. The forum gathered a variety of stakeholders to examine this industry, including the different types of products available to small businesses, the benefits of these products, and possible consumer protection concerns.
The forum, was free and open to the public and was held at the Constitution Center, 400 7th St., SW, Washington, D.C. It was webcast live on the FTC’s website.