It's important when participating in this conversation to understand who the underbanked are. And alarmingly, according to the 2011 FDIC National Survey of Unbanked and Underbanked Households, they are 1 in 5 households in the U.S. (20.1 percent).
We all know about crowd funding, but there are several sources of capital that are rarely discussed: revenue-based loans and asset-based loans. Both types of loans are similar to venture capital in that they work best with companies that have demonstrated potential for strong future growth.
Wisely, SBA modified its rules to permit all SBA lenders to participate in the Small Loan Advantage Program effective June 1. The changes are part of SBA's massive modification to its standard operating procedures.
The revised HARP program will help a few homeowners and investors at taxpayers' expense. It will release refinancing lenders from liability. And most disappointing, it may have no discernible effect on improving our economy.
Angel investors are often wealthy individuals that invest under $1 million in promising, new companies. They lend to companies that are too risky for traditional business loans from conservative banking institutions.