Your Bank Will Never Lend Again

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When the U.S. Treasury offered $30 Billion to banks to lend out to small businesses, 87% of them didn’t even bother to apply for it. Worse, many of the banks that did apply didn’t meet the Treasury’s qualifications. Critics are labeling it a dud, but we believe it to be a complete disaster.

  • When given the chance to help Main Street, the large majority of banks had no interest in lending the Treasury’s money. How can we expect them to lend their own?
  • The “Treasury said that 40% of banks that applied did not meet the program’s basic requirements,” which mainly consisted of creating a plan to lend to small businesses. Many banks apparently can’t even fake a plan to help small businesses, a sign that the relationship between bankers and business owners may be over for good.
  • The “Treasury said that it worked closely with bank regulators to determine an applicant’s likelihood of repaying the loan.” A risk-return analysis indicated the rate of defaults would be too high, so they would rather not lend at all.


Business owners, if you haven’t read up on alternative financing programs such as Merchant Cash Advance, now might be the time to look into it. They’re easy to obtain, credit score flexible, and available. Many consider them to be a fallback option to a bank loan, but if your bank never lends again, then the term ‘option’ will sound pretty darn good.


– The Merchant Cash Advance Resource


Last modified: April 20, 2019
Sean Murray

Category: merchant cash advance, MPR Authored

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