In a statement for the record ahead of the SBA Administrator’s testimony on Capitol Hill, FTA highlights financial technology’s value to small businesses nationwide. 

WASHINGTON, D.C. – The Financial Technology Association (FTA) today announced support for the Small Business Administration (SBA)’s proposal to expand participation in the 7(a) program to non-bank lenders, including financial technology companies. FTA expressed support for the expansion in statements submitted for the record ahead of Small Business Administrator Isabella Casillas Guzman’s testimony in the House and Senate. FTA also highlighted how financial technology companies help expand access to capital and extend critical financial services to support small businesses.

“Small businesses are the backbone of the economy, yet most small businesses are underserved by traditional financial institutions,” said Penny Lee, President and Chief Executive Officer of the Financial Technology Association. “Financial technology companies have stepped in to support small businesses in every zip code, giving the aspiring local florist, neighborhood restaurant, or mom-and-pop store access to capital and the financial tools for success.” 

The SBA proposal to expand 7(a), its most common loan program for small businesses, would create a pathway for non-banks, including leading financial technology companies, to enhance small business’ access to much-needed capital. Since 2008, traditional bank lending to small businesses has decreased substantially, with non-banks and fintech companies stepping in to fill the gap. By 2016, non-bank lenders had a market share of nearly 60 percent of small business lending. According to the SBA’s proposed rule, expanding the 7(a) program, coupled with oversight resources, would better support small businesses and help enhance capital opportunities for underserved businesses. 

Fintech companies use technology to streamline the loan application process, enabling applicants to securely share their cash flow data with banks for real-time insights into their finances. This technology-driven approach reduces complexity and approval time for small businesses, which often face short-term cash flow challenges. Cash-flow-based lending can better assess a small business’s health and creditworthiness than traditional lending. A recent analysis from the Federal Reserve Bank of Philadelphia found that fintechs could predict future loan performance more accurately than traditional approaches to credit scoring. 

Fintechs not only play an essential role in filling the credit access gap for small businesses but also power small businesses with the digital financial tools for success. Fintechs provide access to low-cost banking and digital account services like checking accounts, spend management tools, expense tracking systems, and bill payment tools. Fintechs also give small businesses access to the digital payment methods and e-commerce platforms their customers need to make purchases anywhere, anytime. Learn more about fintech’s support for small businesses here


The Financial Technology Association (FTA) is a Washington, DC-based trade association representing industry leaders shaping the future of finance. We champion the power of technology-centered financial services and advocate for the modernization of financial regulation to support inclusion and responsible innovation.