Alt Lender Fountainhead Secures SBA Loan License — PYMNTS (February 14, 2019)

Summary

A PYMNTS article dated February 14, 2019, "Alt Lender Fountainhead Secures SBA Loan License." It reports that alternative lender Fountainhead Commercial Capital secured a Small Business Lending Company (SBLC) loan program license from American Business Lending and received final approval from the SBA. According to Fountainhead, the SBA has only issued 14 of these licenses since the mid-1970s. The article states that small businesses can obtain SBA loans of between $200,000 and $5 million through the Fountainhead platform, with the SBA backing the 7(a) loan for up to 85 percent of its value.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

Alt Lender Fountainhead Secures SBA Loan License

By PYMNTS | February 14, 2019

|

Small Business Administration (SBA) loans have found a new avenue through which they can reach small businesses.

A press release issued on Wednesday (Feb. 13) said that alternative lender Fountainhead Commercial Capital can now offer SBA loans through its platform after securing a Small Business Lending Company (SBLC) loan program license from American Business Lending. The company noted that it has also received final approval from the SBA . According to Fountainhead, the SBA has only issued 14 of these licenses since the mid-1970s.

SBA loans can be used for working capital, acquisitions, equipment financing, startup financing, debt refinancing and other small businesses finance purposes.

“After years of championing the SBA 504 loan program, we are pleased to expand our financing influence by acquiring an SBLC license for the 7(a) Loan Program,” said Fountainhead CEO Chris Hurn in a statement. “We view this acquisition as a natural evolution for our company, [which] will offer tremendous benefits for the entrepreneurs and ‘Main Street’ businesses that we serve.”

Small businesses can obtain SBA loans of between $200,000 and $5 million through the Fountainhead platform, the company noted, with the SBA backing the 7(a) loan for up to 85 percent of its value.

The recent government shutdown forced the Small Business Administration to stall its lending operations. At the time, Reliant Funding, another alternative finance company, announced the launch of its SBAXpress program, which linked small businesses to up to $250,000 in “bridge” financing while borrowers waited for their SBA loans.

Typically, SBA funding can take up to 90 days to arrive, Reliant Funding said in an announcement last month. During the government shutdown, Biz2Credit CEO Rohit Arora said that it could take months for banks that process and issue SBA loans to relieve the backlog.

“With all the political quarreling in Washington, little has been reported about the impact on small businesses because SBA lending has stalled,” he said within Biz2Credit’s December 2018 Small Business Lending Index announcement . “The government shutdown really has begun to hurt small companies in search of capital.”

Recommended

Waller Opens Fed Conference With Focus on Stablecoins and Tokenized Assets

Claude Users Could Face New ID Checks, Anthropic Says

California Consumers Sue Gas Stations Over AI Price Fixing

Meta Backs India's Cred and Hires Founder to Run WhatsApp

See More In: alternative financing , alternative lender , B2B , B2B Payments , News , SBA , Small business lending , Small Business Loans , What's Hot In B2B

File and source

File

sba-loans-fountainhead-lending-license_66897f959925d7ee.html

Size

120,819 bytes

SHA-256

b9b3b1133051d5d218684f3c3768acbe2b3ba86a72892406ea5c4ecf2072cf8e

Our copy

sba-loans-fountainhead-lending-license_66897f959925d7ee.html

Original

www.pymnts.com