In today’s 24/7/365 world, it’s easy to get lost in the sea of content. It’s even easier to miss out on the most important commercial finance stories, which can often get buried by viral yet less valuable news. Cornerstone Capital Lending created this roundup to help you stay up-to-date on the stories making waves in commercial lending and Fintech—from SBA reopening to Nasdaq’s new Bitcoin indices and beyond.
Here’s a recap of the must-read commercial lending and Fintech stories from the latest news cycle.
China’s penalty for low social credit scores affected 23M in 2018
A strong credit score can have a tremendous impact here in the U.S., making it more difficult to secure both business and personal financing. But in China, the government has taken the concept to a whole new level with its “social credit scores.”
You likely heard about China’s “social credit score” regulations in May 2018, when they first went into effect. But about 9 months after the country said it would begin banning people with low social credit scores from traveling, reports are finally showing the full impact of the policy change. And it’s major.
According to the Associated Press, 23 million people were prevented from buying plane or train tickets in China in 2028 due to their credit score. China’s National Public Credit Information Center said people have been blocked 17.5 million times when trying to buy airplane tickets and 5.5 million times when attempting to gain entry onto a high-speed train.
Read more about China’s social credit score.
A Fintech startup bridging small business loan gaps
Without a trusted advisor like us on your side, finding the right loan can feel like an uphill battle—especially when you’re busy growing your small business. To help small businesses seeking smaller loans (think: $400,000 max), the New Jersey-based startup Credibility Capital has launched an online marketplace with a Fintech spin.
SBA lending bounces back post-shutdown
After being shuttered for nearly the entire month of January a la the government Shutdown, the Small Business Administration is back on track with its lending. That’s good news for small businesses nationwide.
The percentage of SBA loans approved by the SBA in January dropped just 1% month-over-month, despite the fact that the organization was closed for almost the entire month of January. Meanwhile, small business loan ratings at big banks hit 27% in January—a high not seen since the start of the Great Recession.
In 2018, the SBA granted more than 60,000 SBA 7A loans totaling almost $25.4 million. The average greenlighted SBA 7A loan was $420,401.
Read the entire article in Forbes.
Nasdaq launches Bitcoin, Ethereum indices
Stock exchange giant Nasdaq gave the blockchain and cryptocurrency landscape a considerable boost by adding indices for the two biggest cryptocurrencies—Bitcoin and Ethereum—last week.
The Bitcoin Liquid Index (BLX) and Ethereum Liquid Index (ELX) offer “real-time” info on the Nasdaq Global Intex Data ServiceSM—aka, its consolidated data feed. Although Nasdaq has been very active in the blockchain space, this represents a giant boost for crypto enthusiasts. Nasdaq also says it plans to launch a regulated crypto contract this year, but no additional info on that has been made public at this point.
Read more about Nasdaq’s two new indices.
The Cornerstone Capital Lending blog is your resource for Fintech, small business funding and commercial finance news. We’re proud to connect business across the nation with the right funding to help them meet their growth goals. Contact us to see how our experts can help you secure a loan for your business.