Pub. 6 2016-2017 Issue 1

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S July • August 2016 23 STINSON LEONARD STREET LLP \\ STINSON.COM LAW OFFICES IN 13 U.S. LOCATIONS The choice of a lawyer is important and should not be based solely on advertisements. Ernie Panasci » 303.376.8402 ernie.panasci@stinson.com Deborah Bayles » 303.376.8401 deborah.bayles@stinson.com Perry Glantz » 303.376.8410 perry.glantz@stinson.com Robert Botts, Jr. » 303.500.7190 robert.botts@stinson.com Jeffrey Harrison » 303.500.7192 jeffrey.harrison@stinson.com LEGAL PARTNERS YOU CAN TRUST. Our advantage is simple —we understand the business. Stinson Leonard Street’s banking attorneys have broad experience in matters related to financial services, including commercial lending, mergers and acquisitions, regulations and compliance, litigation and payment systems. Bank on our reputation and knowledge. Our Colorado Office: 6400 South Fiddlers Green Circle, Ste. 1900 \ Greenwood Village, CO 80111 \ 303.376.8400 Despite its explosive growth and potential to negatively impact the US small business sector, online lending remains largely unregulated. In response, the Small Business Majority, a national small business advocacy organization, developed a Small Business Borrowers Bill of Rights in 2015, as part of a national coalition of community development financial institutions (CDFIs), microlenders, brokers and advocates to recommend best practices on how to lend responsibly to small businesses. This industry-led effort to expand awareness of small business predatory lending, by working directly with small business owners and partners, establishes the following rights for small business lending: • The Right to Transparent Pricing and Terms • The Right to Non-Abusive Products • The Right to Responsible Underwriting • The Right to Fair Treatment from Brokers • The Right to Inclusive Credit Access • The Right to Fair Collection Practices In addition, mission-driven small business lenders and those in the CDFI industry, including lenders like CEF, are combin- ing efforts to educate our small business communities on how best to access and evaluate financing options in the context of online business lending. • The US Small Business Administration has created an online loanmatchmaking service called LINC (Leveraging Information and Networks to access Capital) to make it easier for entrepreneurs to obtain the credit they need working with local lenders. • Within the CDFI industry, some nonprofit small business lenders are partnering with reputable online lenders to merge fintech platforms with low-cost capital to finance small businesses residing in under-resourced commu- nities. • The Opportunity Finance Network (OFN), a national membership organization of CDFIs, has spearheaded the Small Business Finance Initiative to address the rapidly changing small business lending landscape and how mission-driven lenders like CEF can incorporate advance- ments in fintech and affordable loan capital to meet the needs of more small businesses. n CEF is partnering with Colorado banks to proactively inform our small business sector about the opportunities and challenges presented by online business lending, and how CEF effectively works with local banks to get to that “yes.” To- gether, we can ensure Colorado’s small businesses, and their communities, will be stronger, and our state’s thriving economy more sustainable as we continue to advocate for responsible, transparent and supportive practices in all forms of small business lending.