Whether Amazon.com's commercial lending pilot program issuccessful or not will be determined over time and how itsunderwriting terms stack up against banks, credit unions and otherswho have been doing business lending for years.
|Dennis Dollar, principal partner with consulting firm DollarAssociates LLC in Birmingham, Ala., offered that reaction toAmazon's latest venture of offering business loans to itsonline merchants.
|“I think credit unions can hold their own against all comerswhen it comes to solid business underwriting and a heartbeat forserving small business in their communities,” said Dollar, a formerNCUA chairman.
|Still, Dollar said, “Amazon's entry into the market is simplyanother sign that small business credit is incredibly tough to comeby in today's market, even though small business is the leading job incubator in a nation thatdesperately needs entrepreneurship and the employment growth comingfrom it.”
|All the more reason why Congress needs to remove what Dollarcalls artificial barriers to small business credit such as the12.25% memberbusiness lending cap.
|“Nothing against Amazon, but it is a sign that there is aburgeoning demand for entrepreneurial lending for American smallbusinesses and small businesses to be,” Dollar said.
|“Amazon becomes just one more player in the business creditarena, joining others – both traditional and non-traditional – thatare trying to meet the growing need for start-up business credit inthis country,” he said.
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