In 1911 Irving Berlin wrote a song titled “Everybody’s Doing It.”  That could very well become the theme song for what’s happening now in the world of microloan-sized small business loans – loans under $50,000.  More and more nonbank lenders – fintech lenders, are getting into that market because of the reluctance of banks to make them.  But even some banks are beginning to stick their toes in the water for the same reason that the fintech lenders are – the availability of massive amounts of data, much of which comes from social media posts, allowing them to create algorithms that make lending decisions almost instantly.

Another sign of the changing times is that the insurance giant – Nationwide, has recently partnered with one of the major fintech lenders – Blue Vine, to start tapping into that market.  There is much more coming.  The outlook for small business microloans is continuing to look improve.

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