NYS CDFI Coalition Treasurer Kim Jacobs has a "Contributing Writers" piece in the Westchester County Business Journal this week.
Here's an excerpt:
Imagine you launched a branding and marketing company in 2019. Everything is going great – until a global pandemic breaks out. You need some help with your cash flow and turn to an online lender. What could go wrong?
In Westchester County, one of our clients found out the hard way how predatory lenders are taking advantage of small businesses hit hard by COVID-19.
My parents came from very modest backgrounds to become solidly middle-class owners of a nice home and a prosperous small business. Growing up I remember them often commenting about what a huge difference it would have made to them in life and for their prosperity if they could just have gotten their hands on $10,000 when first starting out. But what if that $10,000 had come from a Merchant Cash Advance lender, stripping wealth rather than building it?