Novel Program Would Connect Patron Lenders to Local Businesses
To address the hardships that small US businesses are facing during the pandemic, a proposed lending program would match local investors with local businesses. Financial Services Regulatory & Enforcement Lauren Pryor partner writes about the model, which she and her colleagues designed, in a July 8 Bloomberg Law article.
Under the auspices of a government agency or an experienced non-governmental group, the “Community Business Capital” (C2B) program would encourage people who “patronize and appreciate local businesses” to make small investments in “the fabric of their communities,” Lauren says.
It’s a “community-based twist to the peer-to-peer lending model,” Lauren says. “Community-minded investors would be able to direct capital to a particular business participating in the program, or to categories of local businesses, such as restaurants or hardware stores.”
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