Many small business owners obtain loans from traditional sources such as their local banks but also from online lenders and other alternative arrangements. Sometimes these owners provide a security interest in their homes or personally guarantee repayment. Given these types of financing arrangements, the level of personal involvement and the importance of small businesses to the U.S. economy (and in communities that may typically have fewer organic business creation such as low-to moderate-income and historically underserved communities), the CFPB through the section 1071 small business data collection rule and many states have shown an interest in learning more about the small business loan market and have also created borrower disclosure requirements.
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