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A newly released report from the Federal Reserve Bank of Richmond sheds light on the evolving landscape of Community Development Financial Institutions (CDFIs), revealing strong demand, shifting capital strategies, and increasing operational strain. The findings come from the 2025 Federal Reserve CDFI Survey and compare results from prior years to identify how these mission-based lenders are adapting. Demand Remains High, But Not Unlimited CDFIs continue to see strong appetite for their services. In the 2025 survey, 71% of respondents reported increased demand, a robust figure, though down slightly from 75% in 2023. However, only 33% of CDFIs said they were able to fully meet demand, a sharp drop from 46% just two years earlier. That signals potential capacity constraints and growing pressure on their resources. Who Are Today’s CDFIs? The composition of CDFIs has changed over time. The survey shows a rise in credit union respondents, while CDFIs focused primarily on commercial or residential real estate have declined. Small business lending remains a cornerstone, about one-quarter to one-third of CDFIs continue to identify it as their primary product line. This evolving makeup suggests a broadening of the CDFI landscape, as traditional lenders, depository institutions, and hybrid models all find a role in community finance. Capital Sources Are Shifting When asked about their top sources of capital, most CDFIs still pointed to earned income and federal funding. However, deposit-based funding, which historically wasn’t as prominent, has become more common, likely due to the growing number of credit unions in the CDFI mix. At the same time, the use of funding from other financial institutions (like banks and impact investors) has steadily declined. This could indicate that CDFIs are either becoming more self-reliant or finding alternatives that offer more stability. Secondary Market Activity Is Growing (Modestly) About 24% of CDFIs now report selling loans on the secondary market, up from 21% in 2023. Still, most loan sale volumes remain small, often under $50 million in total. This suggests early experimentation with liquidity strategies, but not yet widespread adoption of loan sale pipelines. Institutional Stress Is Building The most notable takeaway may be the drop in the number of CDFIs that say they can fully meet demand. While many still report being able to meet most needs, the decline in full satisfaction rates suggests growing constraints, whether in capital, staffing, technology, or compliance. As mission lenders seek to scale, many will likely need to rethink their tech stacks, capital strategies, and potentially their institutional structures. What to Watch Next The Richmond Fed survey points to several short-term trends and areas of focus for anyone in the small business finance or impact lending space: Federal funding stability : Given the importance of government sources, any changes in policy or appropriations could have outsized effects on CDFI operations. Fintech partnerships : As CDFIs look to scale operations and cut costs, collaborations with financial technology firms could help modernize systems and extend reach. Depository models on the rise : With more credit unions and deposit-based strategies entering the space, regulatory frameworks could shift. Innovation in loan sales : As secondary market activity increases, we may see new platforms emerge to help community lenders pool and offload loan risk. Potential consolidation or realignment : Smaller CDFIs feeling capacity strain might look to merge or align with regional networks or umbrella groups to access shared resources. CDFIs remain a vital part of the small business lending and community development ecosystem. This latest Richmond Fed report offers a clear picture of a sector under pressure, but also full of potential. As demand for inclusive financing persists, how these institutions adapt in the coming years will shape the future of underserved business and borrower access across the U.S.

In a recent federal court ruling, a resident of Milledgeville, Georgia, has been convicted for her role in a pandemic-era fraud scheme targeting the U.S. Paycheck Protection Program (PPP). The convicted individual, Rosalend Way , 40, was found guilty of wire fraud conspiracy and money laundering after a three-day trial in the Middle District of Georgia. Prosecutors say she and a co‑defendant, James Frank Austin of Americus, strategically misrepresented payroll data and company ownership to secure millions in PPP funds guaranteed by the Small Business Administration. During the trial, evidence revealed that Way and Austin submitted fraudulent PPP applications for entities such as Propel Opportunity Fund and Austin Smith Center for Community Development (ASCCD). In one instance, Propel claimed 18 employees and a monthly payroll in excess of $420,000, even though IRS and bank records showed no actual payroll activity. The funds were awarded, and large sums were diverted to personal expenses, including the purchase of luxury cars, retail spending, and withdrawals. The stakes are high Way faces up to 20 years in prison and fines reaching $1 million, while Austin’s charges include conspiracy, bank fraud, and money laundering, potentially carrying up to 30 years behind bars. Sentencing dates are set for December 2025 for Way and November 2025 for Austin. Federal officials were vocal about their intent to send a message. U.S. Attorney William R. “Will” Keyes emphasized that exploiting government relief programs undermines public trust. FBI and IRS agents reaffirmed that such fraud diverts funds intended to help businesses struggling during a national crisis and will be punished to the full extent of the law.

Sales-based financing in Texas is undergoing major changes. With the recent implementation of Texas law HB 700 , providers of such transactions have had to spend valuable time and resources figuring out a way to offer financing under the new laws. With that said, small business funding provider Fundkite has announced that they are now offering sales-based financing transactions, also known as revenue-based financing or merchant cash advances, in Texas. Essentially, Fundkite has figured out a structure that will comply with the new Texas commercial financing laws.  About Fundkite Fundkite, founded in 2015, offers multiple financial solutions to the ongoing problems businesses face. They currently offer up to $2 million to SMBs with funding in as fast as 24 hours. Its CEO, Alex Shvarts, has been featured on CNBC and on the Forbes Technology Council. In speaking with Mr. Shvarts, he says that their financing structure is proprietary, and he will only say they have created a payment system that complies with Texas law.  Current situation Complying with the new Texas commercial financing law HB 700 isn’t the easiest thing to do, as many providers have been learning. Some funders have been taking a step back from Texas to see how things will play out, and others have taken aggressive steps to either comply with the law or offer a different loan product. When offering a new term loan product that the provider has not offered before, there is a risk associated with that that some are willing to try, and others won't be. What Fundkite is demonstrating, along with any others that offer or will offer sales-based transactions in Texas, is that they will not let the government deter them from continuing to offer financing solutions to small businesses that need it and will innovate when faced with challenges.

Top observations from Brokers Expo NYC 2025 , where the business funding industry came together this week to network and learn from some of the top experts in the industry. Additionally, what is happening at the SBA that they have reversed the reinstatement of Upfront fees for borrowers , and now waive them for small manufacturers? I talk about the hypocrisy and politics involved. Lastly, we are hosting a tailgate networking event at the Dolphins v Jets on September 29th. RSVP to hold your spot.

Blackbridge Investment Group has rebranded as BIG Funding, reflecting its mission to be more recognizable and accessible to partners and merchants nationwide. The fintech firm, known for revenue-based finance and customer-focused service, will continue delivering fast, flexible, and transparent capital solutions. The rebrand, led by Co-Founders Cosmin Panait and Alexander Dillon, includes a new logo, website, and materials, emphasizing BIG Funding’s commitment to small business growth. New York, NY – September 17, 2025 – Blackbridge Investment Group, a revenue-based finance company, today announced it has rebranded as BIG Funding . The new name reflects the company’s mission to be more recognizable and accessible to its growing network of partners and merchant clients across the country. Since its founding, the company has built a reputation for pairing innovative funding solutions with personalized customer service. The transition to BIG Funding underscores its commitment to delivering fast, flexible, and transparent capital solutions to businesses of all sizes. “BIG Funding represents the next stage of our growth,” said Cosmin Panait , Managing Partner and Co-Founder of BIG Funding. “We wanted a brand that’s not only memorable but also speaks directly to our mission to provide funding that is approachable, trustworthy, and built for the long term. Our partners and merchants know us for being responsive and reliable, and BIG Funding makes that promise even clearer.” “BIG Funding for Small Business isn’t just a motto, it’s our philosophy,” added Alexander Dillon , Managing Partner and Co-Founder of BIG Funding. “We believe every business, no matter its size, deserves access to the right capital at the right time. This rebrand helps us deliver that message with even greater clarity.” The rebrand includes a refreshed logo, website, and partner materials, all of which align with BIG Funding’s vision to simplify access to working capital while fostering strong, lasting relationships with clients. With this change, the company remains focused on offering the same high-quality funding solutions and customer-first approach, while building stronger recognition under the BIG Funding name. About BIG Funding BIG Funding is the trade name of Blackbridge Investment Group, a fintech revenue-based finance company dedicated to helping small and medium-sized businesses access fast, flexible, and non-dilutive capital. By combining innovation with a commitment to customer service, BIG Funding supports businesses in achieving their growth potential. Its guiding principle: BIG Funding for Small Business™. Media Contact Company Name: BIG Funding Contact Person: Matt Turlip Email: Send Email City: New York State: NY Country: United States Website: https://www.bbigm.com/

Stripe, the global payments and fintech infrastructure giant, has announced it will now offer Stripe Capital  to businesses in Australia , marking a significant expansion of its lending operations beyond the U.S. market. This move reflects the growing demand for embedded finance solutions and reinforces the trend of fintechs integrating capital access directly into the platforms that businesses already use on a daily basis. Stripe Capital  has been offering revenue-based financing in the United States since 2019 , enabling small- and medium-sized businesses (SMBs) to access working capital without the lengthy, paperwork-heavy process often associated with traditional bank loans. The model has proven popular: capital offers are based on a business’s transaction history with Stripe, with repayments automatically deducted as a fixed percentage of daily sales. It’s fast, automated, and requires no personal guarantees or credit checks, qualities that appeal especially to digital-native businesses. Now, Australian Stripe users will be able to apply for similar financing through their Stripe dashboards. This localized rollout comes at a time when SMBs in Australia are increasingly seeking alternative funding sources to navigate rising costs, delayed payments, and limited bank credit access. By using the data already flowing through the Stripe ecosystem, the company can offer eligible merchants quick, pre-approved capital, sometimes within a day. As Stripe continues its expansion into new markets with its broader suite of tools, this move signals that capital access is becoming a core offering  in the global fintech playbook.

Funder Intel President Shane Mahabir discusses the news of Fora Financial and Celtic Bank partnering up to expand lending services. He dives into the news, what it means, how funders of sales-based financing (MCA/RBF) are proceeding in Texas, and if people are telling you they are funding sales based transactions/MCAs in Texas, you must watch this video to see why you should be wary. While you're here, if you don't want to miss other videos we produce on YouTube , visit and subscribe to our page here .

Squarespace Capital is a new financing option for entrepreneurs using Squarespace, offering fast, flexible funding with a streamlined application process and no collateral or fixed repayment schedules, the company recently announced. This move mirrors trends across the website builder landscape, as seen with Wix and GoDaddy, and builds on Squarespace’s previous partnership with Novo as a preferred vendor for loans and banking solutions. What is Squarespace Capital? Squarespace Capital enables eligible U.S. and U.K. sellers to access business funding with the structure of revenue-based/sales-based/merchant cash advances with financing offered by Celtic Bank and YouLend, respectively, powered by Stripe, and plans to expand to further geographies. Funds can be used for business growth, from expanding physical locations to investing in marketing or hiring staff, with an emphasis on easy access and simple procedures. Instant Payouts were also introduced, allowing quick access to earnings for eligible customers in several markets. Key Points Fast access  to working capital based on payment history with Squarespace, with approvals and funds typically delivered in days, not weeks. No traditional hurdles  like lengthy applications, fixed schedules, or collateral. 1 set fee, no interest or other fees. Financing is initially available in the U.S. and U.K., with other regions to follow in 2025. Partnership with Celtic Bank/YouLend for financing and Stripe powers it. Broad early adoption among retail, wellness, service, nonprofit, education, and consulting businesses. Industry Trend and Comparisons Squarespace’s fintech push follows industry patterns: Wix also began offering working capital to its users, aligning with the shift toward platform-driven financial services for small businesses. Squarespace previously listed Novo as a preferred vendor in Dec 2023 , giving users access to Novo’s working capital loans and banking tools directly on the platform, a strategic move to integrate financial services that are essential for business growth. GoDaddy has also expanded financial services , reflecting a wider trend of website builders partnering with banks and fintechs to form comprehensive business ecosystems. Why This Was Inevitable This evolution was bound to happen as website builders, including those powered by AI, continually compete to offer “one-stop-shop” solutions for small business owners. The next logical step for platforms with an active merchant base is to leverage user data, from payments and store activity, to offer uniquely tailored financing. As new AI-driven site builders gain traction, expect every major platform to integrate working capital, instant payout, and tailored business banking features as baseline offerings for business customers. Even if they don't build their own capital platform, there are plenty of embedded capital companies that make it fairly simple to implement. These advancements represent a shift in how small businesses access capital: not from banks or slow-moving institutions, but directly within the platforms they use to run and grow their businesses daily.

A chat with Boris Mendes, CEO of B2 Systems, about all things business lending and fintech, as he recently launched the B2 software platform for business loan brokers. With more than 10 years in alternative business funding, Boris shares valuable insights with new entrants and veterans alike. Feel free to leave a comment for Boris or contact him at the following info: Boris Mendes B2 Systems

As of September 1, 2025 , Texas HB 700  officially reshapes the commercial funding environment in the state. This landmark legislation introduces significant regulatory requirements for merchant cash advance (MCA)  and revenue-based financing —also known as commercial sales-based financing  (CSBF). What’s Now in Effect Providers and brokers of CSBF (funding repaid via a percentage of sales or revenue) must now adhere to strict disclosure standards . These include: Total financing amount Disbursement amount Finance charge and total repayment amount Estimated payoff timeline and payment schedule Additional fees, collateral requirements, and broker compensation  Contracts cannot contain confession-of-judgment clauses  or similar provisions, rendering them void and unenforceable  under this law. Crucially, automatic ACH debits  from merchant accounts are now prohibited— unless  the provider holds a first-priority perfected security interest  in the account, a requirement nearly impossible to meet under current UCC norms. What’s Coming — Future Milestones Registration Mandate : Providers and brokers must register with the Texas Office of Consumer Credit Commissioner . This requirement takes effect December 31, 2026 . Rulemaking Timeline : By September 1, 2026 , the Finance Commission of Texas  must adopt enforcement rules and disclosures, while the OCCC  must establish registration forms and fees. Industry Response: What Funders Are Doing With the new law in force, funders are reacting swiftly: Banks and loan providers  that don’t rely on sales-based repayment models remain unaffected and may start positioning themselves as compliant alternatives. Fintech platforms are proactively reaching out to Texas borrowers, offering to refinance existing MCAs  into more compliant products to prevent disruption. Across the funding ecosystem, there’s a growing shift toward traditional term loans  or other models not falling under CSBF classification, ensuring continuity of capital flow for Texas businesses. Why It Matters HB 700 was brought forward supposedly to enhance transparency, curb unfair practices, and protect Texas small businesses from opaque financing deals. But it was pushed by a Texas billionaire who's connected to a factoring company, and with the American Factoring Association, their goal was to reduce competition in the state for factoring products. Additionally, it also places real constraints on how quickly and flexibly fintech funders can deploy capital—forcing industry adaptation in real time. As the law’s framework unfolds over the next 12–15 months, staying informed and compliant will be paramount for funders, brokers, and referral partners.

Everest Business Funding has officially launched a new term loan product  for small business owners in Texas, expanding its portfolio beyond revenue-based financing to meet the state’s evolving regulatory landscape. With HB 700  going into effect on September 1, 2025 , bringing new limitations to sales-based financing, Everest has moved swiftly to provide a compliant and transparent lending alternative. The company is already accepting files for the term loan product  from both merchants and referral partners . This marks a new era in business lending  as funders like Everest adapt in real time—ensuring fast, flexible capital solutions remain available despite increasing regulatory complexity. Everest’s term loan product delivers fixed payments, simple terms, and the same fast approval process business owners and brokers have come to expect. For more details or to submit a file, visit: https://everestbusinessfunding.com

In today’s lending environment, small business owners expect speed, transparency, and a digital experience that feels like working with a top fintech. Until recently, building tools like this meant spending thousands on developers and waiting months to launch. But with Base44 , an AI-powered app builder, brokers can now create their own apps and tools in days, without writing a single line of code. In this video, I’ll show you how to use Base44 to get you those tools quickly! You’ll see how brokers can create: Client portals for funding applications Funding assessment tools to capture leads Deal calculators Even micro SaaS platforms that can turn into a full SaaS business And the best part? You don’t need to hire developers — you can do it yourself in hours or days using Base44, compared to weeks or months. Visit Base44 today to get signed up and start building. Affiliate disclosure: We may earn a commission when you sign up with Base44 using the link provided. This does not influence our videos, as we have tested multiple AI no-code app builders and will present only the best options.