On the heels of the fastest expansion of the U.S. economy in four years, small business owners reported record-high enthusiasm in August's Small Business Optimism Index conducted by the National Federation of Independent Businesses (NFIB). Yet while small-business success is critical to our economic future, many entrepreneurs continue to face obstacles to obtaining much-needed capital for expanding or short-term financing to keep their businesses afloat in unforeseen emergencies.
Over the last several years, a nascent online industry has emerged to fill in the gaps left by traditional funding sources like small-business bank loans. These financial technology enterprises have begun offering small businesses many more options, like online loans, lines of credit, and merchant cash advances (MCAs). Now, these innovative industries are facing increased scrutiny by regulators. In the case of merchant cash advance however, saddling the industry with complex and burdensome regulations could choke off a last line of financing for small businesses in trouble.
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