
Happy Sunday! Let’s take a moment to recharge our caffeine levels and dive into the week’s most compelling stories in business lending and fintech. Whether you're catching up from your cozy corner or preparing for the week ahead, we’ve got you covered with the highlights that matter most. Here are three standout stories you don’t want to miss.
Phoenix Lender Services: A Game-Changer in SBA and USDA Lending
The first big headline comes from the world SBA and USDA business lending. Industry heavyweights have joined forces to launch Phoenix Lender Services, a revolutionary platform designed to streamline SBA and USDA loan processes.
This new venture aims to address pain points that lenders and borrowers alike have experienced—chief among them, the painfully slow application timelines and regulatory hurdles that often derail progress. Phoenix promises to be the all-in-one solution that simplifies underwriting, compliance, and servicing for these loans, allowing more businesses to access crucial capital with speed and efficiency.
The timing couldn’t be better. With the post-pandemic business landscape evolving rapidly, small businesses need agile solutions to navigate economic challenges. Phoenix’s founding team brings decades of experience to the table, and their tech-forward approach might just redefine how SBA and USDA lending operate. The buzz is real—keep an eye on this one!
Cannabis company Standard Wellness Secures $10M
In an industry known for its unique financing challenges, Standard Wellness has set a new benchmark. The cannabis company announced this week that it secured a $10 million credit facility at an enviable rate of 9.25% over 10 years, a major win in a sector where capital is often prohibitively expensive.
The funds will be used to refinance existing debt and fuel expansion efforts. This move not only positions Standard Wellness very well in the competitive cannabis space but also sends a broader message about the sector’s maturation. With more states legalizing cannabis and federal conversations gaining momentum, this deal highlights how institutional lenders are beginning to recognize the industry's potential.
For cannabis operators, this is a clear signal: the era of sky-high lending rates may be on its way out, replaced by more equitable terms for businesses with solid fundamentals.
Par Funding: Partial Relief for Investors
The saga of Par Funding, which annually did millions in small-business funding, took another dramatic turn this week. Investors in the defunct Philadelphia-based lender have started receiving partial refunds, marking a small win in a case riddled with fraud allegations and financial devastation.
After raising $547 million from over 1,700 investors in what the SEC has dubbed a Ponzi scheme, Par Funding collapsed in 2020, leaving many to wonder if they’d ever see a dime of their money again. This week, about $110 million—nearly half of the $227 million in approved claims—has been distributed.
The funds come from assets seized from Par’s founder, Joseph LaForte, and other insiders, including luxury homes, retail properties, and bank accounts. For victims like Joseph Brock, who invested $200,000 and has so far received $43,000 back, these payouts represent a bittersweet victory. Plans for a second round of refunds are already in motion, with the hope of raising total recoveries to around 70%.
Closing Thoughts
Here’s to another week of navigating the ever-evolving world of finance. As always, stay sharp, stay curious, and never stop asking questions.
Until next time!
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