January 8, 2018 EVP of Mintaka Financial Quentin Cote, visited Washington DC to attend the US Chamber of Commerce presentation on the State of American Business, where they laid out the agenda of the US Chamber of Commerce for the upcoming year.

Tom Donohue, CEO of the Chamber of Commerce and Keynote Speaker is optimistic about the current State of Business in the United States; we are ready to plow ahead and move forward, as long as we focus on growing the total economic pie, and not simply slicing the pieces differently.

 

Growing American Business in 2018

Some of the opportunities discussed for American business growth in 2018 were:

  1. Focus on America and the American workforce
  • Modernizing US infrastructure, i.e. roads, bridges, seaports, airports, water supply systems, pipelines, energy grid, etc. brings valuable short term employment boost while investing in the country’s future.
  • Consistent regulation reform is needed to promote growth in the energy, labor, and financial sectors. The Regulatory Accountability Act will create higher hurdles for passing future regulation, and more advocacy at the State level will help ensure States don’t rush to fill the regulatory void left by the Fed.
  • Education reform should teach students how to learn in order to promote lifelong skills-growth led by business needs.
  • With baby boomers leaving the workplace and taking their skills with them, the demand for qualified workers is increasing. Expanded apprenticeships are necessary, and higher education should better align itself with the employment needs and solutions set by industry.
  1. Reform immigration policy
  • Both the 690K Dreamers and the 200+K TPS workers who’ve been here for 20+ years should be allowed to stay and continue contributing to the economy.
  • We should not deport 1+ million legally employed foreign workers, or prevent the 30+K spouses of highly-skilled foreign workers from legal employment and contributing to the economy.
  1. Embrace technology to support growth
  • Continue to promote and facilitate widespread internet access.
  • Protect from anti-tech backlash while safeguarding businesses and consumers against hazards like cyber attacks and intellectual property theft.
  • Broaden financial investment in fast-growth startups, currently seen only on the coasts, to middle America.

While a positive outlook for our economy can breed greater trust and optimism for the future of American business, it is vital to be aware of the looming threats to business growth in the US to understand how to protect against them. Both macro and micro threats risk derailing the “pro-growth” agenda by further segmenting the American political and social spectrums, and diverting attention away from positive growth opportunities.

 Macro Threats to American Business Growth in 2018:
  • Protectionism (i.e. overturning NAFTA)
  • US Debt Default
  • Global risks
 Micro Threats to American Business Growth in 2018:
  • Workforce dislocation due to manufacturing shutdown
  • Massive student debt burdening an entire generation who are unable to get good jobs after graduation
  • Political extremes, like populism and socialism demand too much influence and we need to rebuild the middle of the political spectrum
About Mintaka Financial

Mintaka Financial LLC, located in Gig Harbor WA, was established in December 2004, as a commercial finance company specializing in serving the needs of small businesses across the United States. Mintaka provides equipment leases and loans, originated through a limited group of independent small business finance companies that share ownership in Mintaka. These companies are specialists in small business credit service, selected to participate in the Mintaka program based on their experience and reputation in the industry, and their dedication to building long term relationships with their small business clients. To learn more about Mintaka, please call (888) 705-8778, ext. 1097 or visit www.mintakafinancial.com.

 

With a new year comes a fresh round of proposed Federal and States legislation, and with it the Annual Strategy Meeting of the Innovative Lending Platform Association.

One year after merging with the Coalition for Responsible Business Finance (CRBF), the ILPA is dedicated to shaping the future of the small business lending industry; specifically the burgeoning online lending marketplace that greatly benefits small business across the country by improving access to capital.  

To ensure a healthy regulatory environment for online lenders, ILPA members work diligently to help legislators understand the implications that their proposed regulation may have on the small business lending marketplace. Some of the proposed legislation included;

At the State level:

  • Proposals to limit APR which could have dramatic implications for small business access to capital.

At the Federal level:

  • Established lending doctrine “True Lender” and “Valid When Made” legislation, which work to determine how loan rates and terms are transferred from the originator to the secondary market purchaser, have come under fire due to a recent decision by the Second Circuit Court of Appeals in Madden vs. Midland Funding.

Read more about this decision and how it could greatly limit small business access to affordable funds here in an article by Scott Stewart, CEO of the ILPA.

Another item discussed during the annual meeting was one cornerstone of the ILPA named the “Smart Box.” The “Smart Box” is a borrower disclosure document that allows borrowers to understand and compare the costs and fees of their loan proposals.

About the ILPA:

The Innovative Lending Platform Association (ILPA) is a leading trade organization representing a diverse group of online lending and service companies serving small businesses. United by a shared commitment to the health and success of small businesses in America, the ILPA is dedicated to advancing best practices and standards that support responsible innovation and access to capital for small businesses.