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Capital One Financial is acquiring AI-powered corporate card and spend management platform Brex for $5.15 billion in cash and stock, a 58% discount from Brex's $12.3 billion 2022 valuation, as America's largest credit card lender diversifies beyond consumer cards. THE ANNOUNCEMENT January 22, 2026 Capital One Financial announced it has entered into a definitive agreement to acquire Brex for $5.15 billion in a combination of stock and cash. The transaction comprises $2.75 billion in cash and 10.6 million Capital One shares, expected to close mid-2026. The players: Capital One : America's largest credit card lender ($669B in assets, just swallowed Discover for $35B last year) Brex : AI-native expense management platform serving 25,000+ businesses, including TikTok, DoorDash, Anthropic, and Intel The stage : Business payments, a market Capital One's CEO Richard Fairbank calls "the frontier of the technology revolution" What Brex brings: Modern corporate card platform integrated with spend management software 25,000+ business customers across 50+ countries AI-powered expense automation that eliminates manual accounting tasks Fresh EU banking license (secured just 5 months ago) Revenue mix from interchange fees, SaaS subscriptions, and banking services The leadership continuity: Brex CEO and co-founder Pedro Franceschi will continue leading the company post-acquisition. Henrique Dubugras, who stepped back to board chairman in 2024, remains in that role. THE VALUATION BLOODBATH Or: How a $12.3B unicorn became a $5.15B reality check January 2022:  Brex raises $300M Series D-2 at $12.3B valuation ↓ January 2026:   Capital One acquires Brex for $5.15B The math: 58% haircut  from peak valuation Down $7.15 billion  in paper value Less than half  what late-stage investors paid This represents less than half of Brex's last private-market valuation of $12.3 billion from its 2022 Series D-2 round. The Schadenfreude Factor When the WSJ broke the news Thursday afternoon, you could practically hear the collective snickering from Sand Hill Road to San Francisco's South Park. Silicon Valley loves watching unicorns stumble. But here's the twist:  For early believers, this is a massive win. Micky Malka's Ribbit Capital, which led Brex's $7 million Series A soon after its 2017 founding, is likely staring at a very handsome return. Seed investors could see returns exceeding 100x on original stakes. A $1M seed investment → potentially $100M+ exit (accounting for dilution) The lesson:  Valuation is just a number until exit. Early investors who got in at reasonable prices are celebrating. Late-stage investors who paid $12.3B? Not so much. THE COMPETITOR WHO WON Ramp's victory lap While Brex sells at a 58% discount, competitor Ramp went on an absolute tear: Ramp's 2025 valuation journey: March 2025: $13B August 2025: $22.5B November 2025: $32B That's more than 6x Brex's exit price , and Ramp hit it while Brex was negotiating its sale. Ramp's metrics (as of Nov 2025): $1B+ in annualized revenue 50,000+ customers (vs Brex's 25,000) $100B+ in annual payment volume Free cash flow positive 2,200+ enterprise accounts generating $100K+ ARR each Ramp surpassed $1 billion in annualized recurring revenue and secured more than 50,000 customers. The contrast is probably more painful for Brex's later-stage investors, who watched a competitor lap them multiple times while they awaited an exit. What Happened? Brex's stumbles: 2022:  Abandoned SMB customers to pivot upmarket (generated massive ill will) 2019:  Bizarre decision to buy San Francisco's South Park Cafe, planning a Brex members lounge upstairs, COVID shut it down for a year 2023:  Layoffs as fintech winter hit Slower international expansion  compared to Ramp's aggressive global push Ramp's execution: Stayed focused on the core product Built integrated platform (cards + AP + procurement + travel) Massive marketing push (Super Bowl ads, podcast sponsorships) Positioned around "AI-powered autonomous finance" Relentless enterprise focus Ramp claims 3,293 companies  chose them over Brex. Their comparison page cites customer data showing 70% of Brex transactions missed receipts vs 12% on Ramp. WHY CAPITAL ONE MOVES NOW Founder-CEOs, tech acquisition, and the Discover playbook The Strategic Rationale: Richard Fairbank isn't your typical banker. He's a rare founder-CEO of a major U.S. bank, and he's been on an acquisition spree to transform Capital One into a technology-first payments company. "Brex invented the integrated combination of corporate credit cards, spend management software and banking together in a single platform. They have taken the rarest of journeys for a fintech, building a vertically integrated platform from the bottom of the tech stack to the top," said Fairbank. What Capital One gains: Technology infrastructure  — Brex's AI-native platform built from scratch for modern businesses 25,000 business customers  — Including high-growth tech companies, Capital One doesn't typically serve EU banking license  — Just secured 5 months ago, giving instant access to all 30 EU countries Younger demographic  — Brex's customers skew toward tech startups and growth companies Modern UX  — Software-first approach vs. traditional bank interfaces The Discover connection: Capital One acquired Discover Financial in a $35 billion deal last May, making it America's largest credit card lender. The bank now controls: Massive card portfolio ($280B+) Discover's payment network (competitor to Visa/Mastercard) 75% of revenue from card business Adding Brex gives Capital One: Modern business payment stack to complement consumer cards Software layer that traditional banks lack Credibility with tech-forward businesses The timing is perfect: Brex needed an exit. The fintech funding environment remains challenging, and with Ramp dominating mindshare, Brex's growth trajectory was uncertain. Capital One, flush with Discover integration and strong Q4 earnings, had the capacity and strategic rationale to move. The sale price is nearly 60% below Brex's $12.3 billion valuation in 2022, showing the headwinds that even successful fintech companies have encountered. EPILOGUE: WHAT THIS MEANS FOR FINTECH Five takeaways from the Brex exit 1. The Valuation Reset Is Real Peak 2021-2022 valuations were fantasy. Brex's 58% haircut isn't unique: Down rounds are becoming standard Profitability > growth at all costs Public market comparables matter again The more than 50% decline in valuation for Brex from its 2023 level shows the headwinds that even successful fintech companies have encountered. 2. Execution Beats First-Mover Advantage Brex had a two-year head start on Ramp. Ramp is now worth 6x more. Lesson: Building fast matters, but building right matters more. 3. The Acquirers Are Banks, Not Tech Companies Despite fintech's promise to disrupt banks, the winners are becoming traditional financial institutions that buy innovative technology rather than build it. Recent fintech M&A: Capital One buys Discover ($35B) Capital One buys Brex ($5.15B) More consolidation expected in 2026 4. International Expansion Is The Next Battleground Just five months ago, Brex secured a license to operate in the European Union, enabling it to "directly issue credit and debit cards and offer its spend management products to any business in all 30 EU countries with no workarounds required." For Capital One, the timing is as good as it gets. The bank gains immediate access to European corporate banking customers through Brex's freshly minted EU license. 5. Early Investors Still Win Big Despite the down round, Ribbit Capital, Y Combinator, Kleiner Perkins, and other early backers are making massive returns. $7M Series A → $5.15B exit = exceptional outcome Venture capital math still works if you get in early enough. THE FINAL NUMBERS Deal Structure: $2.75B cash 10.6M Capital One shares Total: $5.15B Expected close: Mid-2026 Advisors: Capital One:  BofA Securities (financial), Wachtell Lipton (legal) Brex:  Centerview Partners (financial), Wilson Sonsini, Simpson Thatcher, Skadden Arps (legal) What happens next: Q2 2026: Regulatory approvals and closing conditions Q3 2026: Integration begins 2027: Brex technology rolled into Capital One's business banking platform The unanswered question: Will Capital One let Brex operate independently (preserving the tech-forward culture) or absorb it into traditional bank operations (killing what made it special)? History suggests banks struggle with the latter. Time will tell if Fairbank, as a founder-CEO himself, can thread that needle better than his peers. Sources:  Capital One press release, CNBC, TechCrunch, American Banker, Payments Dive, Sacra Research, PM Insights, Fortune, Bloomberg Law

If you are wondering where the smart money is moving in 2026, look no further than the latest deal from NewtekOne . The company just closed a $295 million securitization  of its Alternative Loan Program (ALP) notes. But the headline isn't the size of the deal, it’s the demand. According to the release, the offering was roughly 10 times oversubscribed , with 32 separate institutional investors fighting to get a piece of the paper. What Happened? The Deal:  Newtek sold $295 million in rated notes backed by a pool of $342 million in business loans. The Rating:  The Class A notes received an "A (low)" rating from Morningstar DBRS. The Pricing:  The weighted average yield was 6.08%. The Signal:  When 32 institutions show up to bid on business loan paper, it means the capital markets are officially "risk-on" for the right kind of SMB asset. What is the "ALP" Product? The Alternative Loan Program (ALP)  is Newtek's answer to the "grey zone" borrower, the business that is too big or too liquid for a standard SBA 7(a) loan, but perhaps needs more flexibility than a conservative local bank will offer. Loan Size:  Average is ~$4 million (vs. $450k for SBA). Terms:  10–25 year amortization (no balloon payments), which kills the cash-flow pressure of shorter-term debt. The "Credit Elsewhere" Test:  ALP loans are often for borrowers who could  get credit elsewhere but prefer the speed or structure of Newtek, meaning they don't qualify for SBA. The Takeaway This securitization is a "reload" of Newtek's cannon. With $295 million in fresh liquidity and a 10x vote of confidence from Wall Street, expect Newtek to be aggressive in originating these larger ($2M - $15M) files in Q1 and Q2.

Fundbox, a leading embedded finance platform, has launched in Australia with a $100M AUD warehouse facility from MA Financial Group, enabling platforms like Stripe to offer integrated small business lending. The expansion brings Fundbox's proven embedded capital infrastructure, which has delivered over $6 billion in financing to 170,000+ U.S. businesses since 2013, to Australian SMBs through white-labeled, plug-and-play integration. When a U.S. embedded finance leader crosses hemispheres with $100M in backing, it's not just an expansion, it's a signal that business lending infrastructure is going global fast. The Move Fundbox, the leading provider of embedded capital infrastructure for the small business economy, announced its expansion into Australia, bringing its proven technology, underwriting, and capital capabilities to platforms serving Australian SMBs. The timing is strategic. As part of its international expansion, Fundbox has raised a warehouse facility that can be upsized to $100M AUD from funds managed by global alternative asset manager MA Financial Group. With a fully white-labeled, plug-and-play integration, Fundbox enables platforms in Australia to offer embedded financing without building a capital stack from scratch. Translation: Australian payment providers, vertical SaaS companies, neobanks, and commerce marketplaces can now launch lending products in weeks instead of years. The first customer? Fundbox is powering the launch of digital-first capital tools for platforms like Stripe to help Australian businesses access fast, seamless financing. Why Australia, Why Now Fundbox didn't pick Australia randomly. The market checks every box for embedded finance expansion: Sophisticated financial infrastructure  - Australia already has real-time payments (NPP), open banking frameworks, and high digital adoption among SMBs. Underserved SMB lending market  - Traditional banks tightened small business lending post-GFC, creating a gap that alternative lenders and embedded finance can fill. Platform economy maturity  - Australian businesses already use SaaS platforms extensively for accounting (Xero), payments (Stripe), and operations. The distribution channels exist—they just need capital products. Regulatory clarity  - Australia's regulatory framework for fintech is well-established compared to emerging markets, reducing execution risk. "Expanding into Australia marks a major milestone in our mission to embed capital into the platforms that power the global SMB economy," said Prashant Fuloria, CEO at Fundbox. The Infrastructure Play Here's what makes this announcement significant: Fundbox isn't entering Australia to compete with banks or become a direct lender. They're building the rails that let platforms become lenders. Since 2013, Fundbox has pioneered embedded capital in the United States, enabling more than 170,000 small businesses to access over $6 billion in financing. Now they're exporting that playbook globally. The warehouse facility from MA Financial Group is critical. This facility further supports Fundbox's ability to deliver fast, integrated working-capital solutions and contributes to the company's more than $2B USD in annual global funding capacity. Guy Kaufman, Executive Director in MA Financial's Global Credit Solutions team, explained: "We are excited to partner with Fundbox on this milestone transaction, supporting its expansion into Australia through a bespoke asset-backed lending facility. Fundbox has developed a differentiated and scalable platform, and we look forward to supporting the firm's growth in the Australian market." What This Means for Australian Platforms SMB platforms, including payment providers, vertical SaaS companies, neobanks, and commerce marketplaces, can now launch embedded capital products in Australia quickly, compliantly, and with confidence. Consider the typical path for a platform wanting to add lending: Old way: Build underwriting infrastructure (12-18 months) Secure banking partnerships (6-12 months) Raise warehouse facility (6-12 months) Hire compliance and risk teams Navigate regulatory licensing Total time: 1-3 years, tens of millions in investment Fundbox way: Integrate Fundbox's API White-label their lending products Tap into their capital and underwriting Launch in weeks The value proposition is obvious: platforms can monetize their customer relationships through embedded capital without becoming a bank. The Global Embedded Finance Wave Fundbox's Australia expansion is part of a massive global trend. The numbers are staggering: In 2026, the embedded B2B market stands at approximately $4.1 trillion and is projected to reach $15.6 trillion by 2030, representing a quadrupling of market size in just five years. According to McKinsey's Embedded Finance report, global revenues from embedded finance could exceed $7T by 2030, with exponential growth projected across both consumer-facing and B2B platforms. The embedded finance market isn't just growing, it's accelerating. The global embedded finance market size was estimated at $83.32 billion in 2023 and is projected to reach $588.49 billion by 2030, growing at a CAGR of 32.8% from 2024 to 2030. Why B2B Embedded Finance Is Different Consumer embedded finance got the headlines first: BNPL at checkout, instant loans in apps, digital wallets everywhere. But B2B is where the real money is. B2B payments alone represent over a $100T global market. And unlike consumer lending, B2B embedded finance solves acute business problems: Invoice financing for cash flow gaps Equipment loans at the point of purchase Working capital lines integrated into accounting software Supply chain finance embedded in procurement platforms Small businesses are feeling the squeeze particularly hard, with 58% reporting inflation as a top financial challenge in Q1 2025, marking a new high. This economic reality makes embedded lending and working capital solutions especially valuable. The Geographic Expansion Pattern Fundbox's move to Australia follows a clear pattern we're seeing across embedded finance: Phase 1: Dominate home market  (U.S. for Fundbox - $6B+ deployed) Phase 2: Expand to English-speaking markets with similar regulatory frameworks  (Australia, UK, Canada) Phase 3: Enter high-growth emerging markets  (Southeast Asia, Latin America, India) Other major players are following similar playbooks. Stripe continues to expand embedded payments and lending for SaaS platforms via Stripe Connect and Stripe Capital. In India, Razorpay has moved beyond payments into embedded payroll and credit. In the MENA region, the embedded finance market, valued at $11.2 billion in 2024, is projected to soar to $37.7 billion by 2029. The infrastructure layer for global SMB capital is being built right now, and the winners will be platforms that move fast. Regulatory Tailwinds and Headwinds Embedded finance expansion isn't happening in a vacuum; regulators are paying attention. In India, embedded credit players must now comply with the Reserve Bank of India's digital lending guidelines, which prohibit unlicensed entities from extending credit directly. In the EU, PSD3 and the Financial Data Access framework, expected by 2026, will mandate broader access to customer data. The bifurcation is clear: Players with licensing or bank partnerships may thrive, while unregulated distributors face tighter restrictions, especially in credit and insurance. This is exactly why Fundbox's model works. They partner with licensed entities, handle compliance, and provide platforms with a fully regulated solution. Platforms get the revenue and customer retention benefits of embedded finance without the regulatory risk. The Institutional Capital Angle Embedded finance creates a scalable channel for asset managers like MA Financial to access the Australian SMB opportunity, aligning institutional capital with real-economy demand. This is a critical piece of the puzzle. Institutional investors have trillions in capital seeking yield, but SMB lending has traditionally been too fragmented and operationally intensive. Embedded finance platforms aggregate SMB demand at scale, providing institutional investors with diversified exposure to small business credit. The warehouse facility model creates a win-win-win: Fundbox  gets capital to deploy without balance sheet risk MA Financial  gets exposure to SMB credit with a technology-enabled origination partner Platforms  get embedded lending products without raising capital themselves The Competitive Landscape Fundbox isn't entering a vacuum. Australia already has embedded finance players and alternative lenders. But few have: Decade of U.S. market track record ($6B deployed) Proven platform partnerships (170,000+ businesses served) Full-stack infrastructure (underwriting, compliance, capital, servicing) Institutional capital backing ($2B+ annual funding capacity) The competitive moat is a combination of technology, capital, and expertise. Building one of these is hard. Building all three is why Fundbox can expand internationally while local players struggle to scale. What Comes Next for Fundbox Fundbox's launch in Australia reflects its broader strategy: becoming the global infrastructure layer that enables digital platforms worldwide to embed financial tools natively into their experience. If Australia succeeds, expect: UK expansion (similar regulatory framework, massive SMB market) Canada entry (USMCA alignment, strong fintech ecosystem) Southeast Asia pilots (high growth, digital adoption, underbanked SMBs) The global embedded finance land grab is underway. Platforms that embed capital products now will lock in competitive advantages for the next decade. Those who wait will find themselves competing against rivals who can offer financing seamlessly while they're still sending customers to bank websites. As embedded finance continues its rapid ascent, the question is no longer whether traditional financial institutions should adapt, but how quickly they can.

When I first considered upgrading to the American Express Platinum Card , I wanted to understand if the benefits truly matched the high annual fee of almost $900. After diving into the details and experiencing the card firsthand, I realized the value goes far beyond just a credit card. If you travel often, enjoy exclusive experiences, use streaming services, or want premium perks, this card could be a smart choice. Let me walk you through the key benefits and why it might be the right fit for your lifestyle. American Express Platinum Card multiple designs Travel Perks That Make a Difference One of the biggest draws of the American Express Platinum Card is its extensive travel benefits. If you fly frequently, these perks can save you time, money, and stress. Airport Lounge Access The card grants access to over 1,400 airport lounges worldwide, including the exclusive Centurion Lounges. Imagine waiting for your flight in a quiet, comfortable space with complimentary food and drinks. This alone can transform your travel experience. Airline Fee Credit Each year, you receive up to $200 in statement credits for incidental airline fees. This covers things like checked bags or in-flight refreshments, which add up quickly. Global Entry or TSA PreCheck Credit The card reimburses the application fee for either Global Entry or TSA PreCheck, helping you breeze through security and customs lines. Fine Hotels & Resorts Program When booking through this program, you get benefits like $600 in credits per year, room upgrades, daily breakfast for two, late checkout at 4 pm, and more at over 1,000 luxury hotels worldwide. These travel perks add convenience and comfort, making the card worth considering if you value smooth and enjoyable trips. Rewards That Add Up The American Express Platinum Card offers a rewards program that fits well with travel and everyday spending. 5X Membership Rewards Points on Flights and Hotels You earn five points per dollar spent on flights booked directly with airlines or through American Express Travel, as well as prepaid hotels. This accelerates your points balance quickly if you travel regularly. 1X Points on Other Purchases For all other spending, you earn one point per dollar, which still adds value over time. Flexible Points Redemption Points can be redeemed for travel, gift cards, or transferred to airline and hotel partners, giving you flexibility to maximize value. For example, if you spend $20,000 annually on flights and hotels, you could earn 100,000 points just from those purchases, which can cover a significant portion of your next trip. Exclusive Access and Experiences Beyond travel, the card offers unique experiences that you won’t find with many other credit cards. By Invitation Only Events Cardholders get access to exclusive concerts, dining events, and cultural experiences. These are often limited to small groups, making them special opportunities to connect and enjoy. Concierge Service The 24/7 concierge can help with everything from securing hard-to-get reservations to arranging gifts or travel plans. This service adds a personal touch that saves time and effort. Shopping and Entertainment Benefits You can enjoy early ticket access to concerts and shows, as well as special offers at select retailers. These benefits enhance your lifestyle by opening doors to memorable moments and convenience. Luxury hotel lobby with modern design and comfortable seating Financial Considerations and Protections While the American Express Platinum Card comes with a higher annual fee, the benefits can offset this cost if you use them wisely. Annual Fee The fee is $895, which might seem steep, but when you factor in credits and perks, you can get double that amount back each year! Statement Credits Besides the airline fee credit, you get up to $100 credit for Global Entry or TSA PreCheck, and up to $200 for Uber rides annually in the U.S. Purchase and Travel Protections The card offers extended warranty, purchase protection, trip delay insurance, and baggage insurance. These protections provide peace of mind when making purchases or traveling. No Foreign Transaction Fees This is a big plus for international travelers, as you won’t pay extra fees on purchases abroad. If you use the credits and benefits regularly, the card can pay for itself and then some. Who Should Consider the American Express Platinum Card? This card is not for everyone. It suits people who: Travel frequently for business or leisure Appreciate premium airport experiences Want access to exclusive events and concierge services Are comfortable with a higher annual fee but want strong rewards and credits Prefer flexible points that can be used with multiple travel partners If you rarely travel or don’t use premium services, the card might not deliver enough value to justify the cost. How to Make the Most of the Card To get the best value from the American Express Platinum Card, consider these tips: Use the airline fee credit every year Book flights and hotels through American Express Travel to earn 5X points Take advantage of lounge access whenever you fly Use the Uber credits for rides or food delivery Explore the Fine Hotels & Resorts program for your stays Spend all store credits ( Saks, Lululemon, Walmart+,_ Contact the concierge for help with special plans or reservations By actively using these benefits, you can unlock significant savings and experiences. Final Thoughts on the American Express Platinum Benefits Upgrading to the American Express Platinum Card brought me more than just a credit card; it opened up a world of travel comfort, rewards, and exclusive experiences. The card’s benefits are designed for people who want to enhance their lifestyle and travel with ease. While the annual fee is high, the credits and perks can more than cover it if you use them well. If you travel often or want to enjoy premium services, this card deserves a close look. The key is to understand the benefits and use them actively to get the most value. Applying for the card could be a step toward a more rewarding travel and lifestyle experience. Close-up of travel essentials with American Express Platinum Card

Capital After Hours was an incredible evening, and we want to extend a sincere thank you to everyone who attended, sponsored, and supported the event. The night was filled with meaningful conversations, new connections, and a strong sense of community across the commercial finance and fintech industry. Selling out ahead of the event only reinforced what we continue to see, there is real demand for high-quality, in-person networking done the right way. Thank You to Our Sponsors Capital After Hours would not be possible without the support of our sponsors. We’re grateful to each of the following companies for helping make the evening such a success: 1st Commercial Credit  – Premier Beverage Sponsor Spartan Capital  – Platinum Food Sponsor Optimum Bank Liquidibee Arcadia Servicing Zlur Funding Receivabull Reliance Financial Triton Recovery Group Everest Business Funding Your support helped create a professional, welcoming environment designed for real connection. Supporting Second Chance Society We’re also proud that a portion of the proceeds from Capital After Hours was donated to Second Chance Society , a local organization dedicated to helping individuals overcome life challenges through tools, training, and pathways back into the workforce. Thank you to everyone who contributed. Your generosity helps make a real impact in our community. View Event Photos We captured some great moments from the evening, and all photos are now available. 👉 Click the button below to view the full gallery in our Event Pics section. What’s Next Capital After Hours will continue to grow because of the people and companies who support it. We look forward to seeing you at the next Capital After Hours!

If you’ve been paying attention to the PPP program over the last couple of years when the Small Business Administration created the program to help millions of businesses, you might have anticipated some of the fraud cases now reaching resolutions for criminal charges. One of those cases recently concluded was that of 40-year-old Tristan Bishop Pan of North Carolina. According to the Department of Justice, he submitted numerous fraudulent PPP loan applications to federally insured banks, including on behalf of entities named White Walker, Khaleesi, and The Night’s Watch, which are characters or groups from the show Game of Thrones. Mr. Pan was obviously a big fan of the hit HBO TV series that ended before the pandemic lockdowns. Unfortunately for him, being a fan doesn't prevent you from receiving 20 months in federal prison . The wave of other convictions and judgments recently means that, just as in the Game Of Thrones, winter is coming for PPP fraudsters. In the show, the phrase was used to mean troubled times were ahead in the winter, although there were seemingly always troubles. Well PPP fraudsters have been getting caught and prosecuted but the pace has picked up while cases wind their way through the courts. Some other recent cases include: Long Island Physician Sentenced to 51 Months in Prison for Covid-19 Loan Fraud ; and HPM Corporation and Owners Accept Responsibility, Agree to Pay Nearly $3 Million in Restitution and Penalties for Fraudulent Covid-19 Relief Loan . This last one involving HPM Corporation, a Department of Energy contractor, is particularly interesting in that it's the first case I’ve seen regarding false statements when applying for PPP ‘loan forgiveness’, which in this case was $1,344,700. The owners of HPM falsely stated that the PPP loan proceeds had been used for payroll and other eligible expenses when they had not been, according to the DOJ. They ended up settling for double the amount that they received plus another $250,000 fine. Photo by: DOJ Here's why there are more troubled times ahead for those who took out or sought loan forgiveness for PPP loans under fraudulent circumstances. On March 1st of this year, the White House announced, “The Department of Justice’s (DOJ) COVID-19 Fraud Enforcement Task Force will expand its already robust efforts by appointing a Chief Prosecutor to lead teams of specialized prosecutors and agents focusing on major targets of pandemic fraud, such as those committing large-scale identity theft, including foreign-based actors. These strike force teams will also use state-of-the-art data analytics tools to connect the dots on identity theft and other complex fraud schemes committed across state lines or transnationally, as well as investigate major cases of criminal fraud in programs like the Paycheck Protection Program (PPP) and Unemployment Insurance (UI).” It will be interesting to see in the coming months the number of cases that get prosecuted. The DOJ has already been aggressive in its pursuit of justice against those who tried to beat the system. Millions have been lost to fraudsters but most would assume millions more in fraud are unaccounted for. To the perpetrators , the DOJ is essentially telling you that winter is coming.

Under a federal court order, the Trump Administration has agreed to release the quarterly funding transfer to the Consumer Financial Protection Bureau (CFPB), ending a freeze that threatened to shut down the agency's operations. The weeks-long game of chicken between the White House and the Consumer Financial Protection Bureau is over. On Friday, the Department of Justice informed a federal court that the administration would comply with an order to process the CFPB’s funding request. This effectively ends, at least temporarily, the executive branch's attempt to halt the agency's activity by withholding its budget. How We Got Here Since the start of the new term, the administration has explored multiple avenues to curb the CFPB’s aggressive enforcement reach. The latest strategy wasn't to fire the Director, but to simply turn off the lights. By delaying the transfer of funds (which legally come from the Federal Reserve, not Congressional appropriations), the administration hoped to force an operational standstill. The Court Steps In Legal experts had warned this strategy was risky, citing the Supreme Court’s 2024 ruling that affirmed the CFPB’s unique funding structure. The federal court agreed, issuing an injunction that effectively said: You cannot ignore the statute just because you dislike the agency. What Happens Next This is not the end of the CFPB debate. The ruling: Buys time, but does not settle long-term questions about CFPB authority Keeps enforcement and rulemaking on track in the near term Sets the stage for continued legal and political challenges In short, the agency remains operational with $145 million in funding, but its future structure and funding model are still very much in play.

Jelena McWilliams, the former chair of the Federal Deposit Insurance Corporation (FDIC), recently joined Plaid, a leading fintech company known for connecting consumer bank accounts to apps. This move marks a significant moment for the fintech sector, blending regulatory insight with technology-driven financial services. Here’s what this means for the future of fintech innovation and regulation. Jelena McWilliams’ Background and Expertise Jelena McWilliams served as the FDIC Chair from 2018 to 2022, overseeing a critical period for banking regulation. Her tenure focused on balancing strong oversight with supporting economic growth. McWilliams is recognized for her deep understanding of banking laws, risk management, and consumer protection. Her experience includes: Leading the FDIC through complex regulatory challenges Advocating for clear and fair banking rules Engaging with financial institutions to promote stability Her move to Plaid brings this regulatory expertise directly into the fintech space, where innovation often outpaces regulation. Why Plaid’s Hiring of McWilliams Matters Plaid is a key player in fintech, providing the infrastructure that allows apps to securely access users’ bank data. The company’s services power many popular financial apps, from budgeting tools to payment platforms. Hiring McWilliams signals Plaid’s commitment to navigating regulatory complexities while expanding its services. This hiring could impact fintech in several ways: Stronger regulatory compliance : McWilliams’ knowledge helps Plaid anticipate and adapt to evolving rules. Improved trust with banks and consumers : Her reputation may ease concerns about data security and privacy. Guidance on policy engagement : Plaid can better influence fintech regulations with her insight. This blend of technology and regulatory expertise could set a new standard for fintech companies aiming to grow responsibly. The Broader Impact on Fintech Innovation Fintech companies often face challenges balancing rapid innovation with regulatory demands. McWilliams’ presence at Plaid may encourage other fintech firms to prioritize compliance without slowing down innovation. Key potential outcomes include: More collaboration between fintech and regulators : Encouraging open dialogue to shape practical rules. Enhanced consumer protections : Ensuring fintech products are safe and transparent. Faster adoption of new technologies : With clearer regulatory pathways, fintech can introduce features more confidently. Plaid’s move might inspire a shift in the industry toward sustainable growth that benefits users and financial institutions alike. Looking Ahead: Plaid’s Role in Shaping Fintech’s Future Plaid’s decision to bring Jelena McWilliams on board reflects a strategic effort to lead fintech responsibly. As financial technology continues to evolve, companies that understand both technology and regulation will have an advantage. Plaid’s future may include: Expanding partnerships with banks and financial institutions Launching new products that comply with emerging rules Playing a key role in industry discussions on fintech policy McWilliams’ expertise will be crucial in guiding these efforts, helping Plaid and the broader fintech community navigate a complex landscape.

Not all major capital movements arrive with flashing headlines. Some of the most consequential shifts happen quietly, setting the tone for what comes next. That’s the case with the announcement that members of the Opportunity Finance Network (OFN)  received $4.3 billion in New Markets Tax Credit (NMTC) allocations  at the close of 2025, capital that will largely shape investment activity throughout 2026 and beyond . While the headline number grabs attention, the real story is about direction : where capital is being encouraged to flow, which projects are being prioritized, and how investment strategies are evolving as the new year unfolds. A Late-2025 Decision With Long-Term Impact NMTC allocations don’t function as one-time events. Once awarded, this capital typically enters the market over multiple quarters, influencing project pipelines well into the future. This $4.3 billion allocation signals: Accelerated investment activity entering 2026 Increased momentum in community-focused development Longer-term commitments rather than short-term deployments In other words, this was less about closing out 2025 and more about setting the table for the next cycle . The Types of Projects This Capital Fuels Historically, NMTC investments support projects that combine economic activity with community stability, including: Commercial real estate tied to job creation Healthcare, education, and essential services Manufacturing and industrial facilities Mixed-use developments revitalizing local corridors These are projects designed for durability, not rapid exits, and they often operate outside traditional financing lanes. A Broader Shift in How Capital Is Deployed Stepping back, this allocation reinforces a growing theme across finance: capital is becoming more deliberate . As uncertainty continues to shape traditional credit markets, structured programs like NMTC play a stabilizing role by: Encouraging patient capital Supporting layered financing structures Reducing concentration risk This approach reflects a longer-term view of growth, one that prioritizes resilience over speed. Why This Matters Now Entering 2026, many market participants are watching where capital actually moves , not just where it’s discussed. Allocations of this size don’t just fund projects; they: Shape regional development priorities Influence deal structures across markets Signal confidence in community-driven economic models In that sense, the timing of this announcement may be as important as the amount itself. The Bigger Picture This is not simply a story about tax credits or year-end announcements. It’s a signal about where momentum is building next . The $4.3 billion NMTC allocation marks a transition point, from a cautious close to 2025 into a more intentional, deployment-focused 2026. And those signals tend to matter long after the headlines fade.

It’s Friday morning. You’ve likely spent the better part of this week behind a dual-monitor setup, navigating spreadsheets, responding to urgent emails, and perhaps taking a few hundred calls and hopefully a few closed deals to show for it. In the fast-paced world of capital and lending, we often mistake "efficiency" for "relationship building." But if we’ve learned anything from hosting seven successful mixers over the last two years, it’s this: The most profitable, longest-lasting partnerships rarely start in an inbox. They start in person. Next Thursday, January 15th , we are launching Capital After Hours  at Earls on Las Olas. And we want you to step out of the office and into the room. The Office Trap It’s easy to stay in the "office grind." It feels safe. It feels productive. But the office can also be a bubble. When you only communicate through a screen, you lose the nuance of conversation, the shared laugh over an appetizer, and the "gut feeling" you get when meeting a potential partner face-to-face. Building a network isn’t just about adding contacts to a CRM and closing a one off deal; it’s about building trust . And trust is built much faster over a curated cocktail on a rooftop balcony than it is over a "Following up" email. "But I'm Not a 'Networker'..." We hear this all the time. "Networking feels forced," or "I’m not comfortable in a room full of strangers." Here is the truth: Growth only happens outside of your comfort zone.  Capital After Hours isn't a high-pressure sales environment. It’s a room full of your peers, brokers, lenders, and industry leaders, who are all there for the same reason. Whether you’re an extrovert who thrives in a crowd or an introvert who prefers a quiet one-on-one conversation, this space is designed for you. We provide the backdrop (and the incredible food), so you can just be yourself. Even if you’re nervous, show up. The best connection you make all year might be the one you almost didn't go meet. The Final Countdown We are less than a week away. On Thursday at 6:30 PM, the Funder Intel team and our incredible sponsors will be at Earls on Las Olas, ready to welcome you to our 8th self-hosted event. What’s waiting for you: Exclusive Access:  We have the upstairs balcony reserved just for this group. Premium Hospitality:  A full open bar and a chef-curated menu (the sushi and lobster tostadas are worth the trip alone). Impact:  Remember, a portion of your ticket supports the Second Chance Society , helping people in our Fort Lauderdale community get back to work. More Deals Await The digital world is great for maintenance, but the physical world is where you grow. Don't let another week go by without investing in your most valuable asset: your professional network. Only a few days left to grab your spot. See you on the balcony. 🎟️ Secure your ticket here. Tickets will NOT be sold at the door.

Funder Intel has officially launched its newly branded, premier networking event: Capital After Hours. This isn't just another mixer; it's the place where the commercial finance industry's top players cut deals, build relationships, and enjoy an evening that matches their success. The Details You Need to Know Item Details WHAT: Capital After Hours WHEN: Thursday, January 15th TIME: 6:30 PM – 8:30 PM WHERE: Earls Kitchen + Bar, Las Olas, Fort Lauderdale  (Exclusive Upstairs Balcony) TICKETS: $75 per person 🥂 The Earls Experience: Why It’s Different We’re taking over the stunning second-floor balcony at Earls, offering an exclusive, sophisticated space for focused networking. Forget crowded lobbies; this is a controlled environment designed for high-value engagement. Your ticket isn't just entry, it’s an all-inclusive passport to a premium experience: The Culinary Journey Our menu is chef-curated to fuel high-powered conversations. We’re featuring an elevated spread designed for mingling: Gourmet Platters:  Seafood, Sushi, and Charcuterie stations. Passed Favorites:  Premium appetizers like Lobster Tostadas and savory Beef Sliders. The Open Bar Advantage Say goodbye to drink tickets. We are hosting a full two hours of the Cocktail, Beer, and Wine Package . From the moment you arrive, your focus is entirely on the person in front of you, not your wallet. 🤝 Connections That Convert This is Funder Intel’s 8th exclusive networking event, and we’ve perfected the guest list. You'll find a focused room of decision-makers: top-tier lenders, established brokers, and capital partners - all in one place, ready to talk business. Our Goal:  To make every minute of the two hours count, leaving you with genuine leads and strengthened relationships. A Hand Up: Our Partnership with Purpose We are proud to continue supporting the Second Chance Society  in Fort Lauderdale. A portion of every ticket sale directly funds their mission to help individuals facing homelessness or hardship regain self-sufficiency. By providing necessary material aid, from tools and uniforms to vocational training, your presence at Capital After Hours creates a tangible positive impact right here in the local community. We can’t wait to raise a glass with you at Capital After Hours !

In this lending environment, general data is useless. Knowing the "average" default rate won't save your portfolio when specific sectors are imploding while others are thriving. A new analysis of 2025 SBA 7(a) loan performance data has just been released, and for brokers and lenders, it is practically a treasure map. The data, analyzed by Monitor Daily , reveals a stark divergence in performance based almost entirely on NAICS codes. The takeaway for 2026 is clear: Stop chasing yield in high-burn sectors and start doubling down on the safe havens. Here is the intel you need from the report. The "Bulletproof" Sectors (Target These) If you are looking for reliable paper and smooth underwriting, two sectors are outperforming everything else by a wide margin. 1. Healthcare & Social Assistance This is currently the gold standard of SBA lending. The Data:  Default rates for physicians, dentists, and specialized outpatient care centers are hovering below 1% . The Why:  High barriers to entry, recession-resistant demand, and strong cash flows make these borrowers incredibly resilient. Even with inflation, people need doctors. 2. Professional, Scientific, and Technical Services Think accountants, architects, engineers, and law firms. The Data:  These sectors are showing default rates in the very low 1.5% to 2% range . The Why:  These businesses often have low overhead (no heavy inventory or massive equipment costs) and high billing rates. They are nimble and capitalized well enough to weather economic bumps. The "Danger Zones" (Proceed with Extreme Caution) Conversely, the report highlights sectors where inflation, labor costs, and margin compression are causing massive bleed-out. If you are writing paper here, your underwriting needs to be flawless. 1. Transportation and Warehousing (Specifically Trucking) The data here is ugly. The Data:  Default rates in some trucking sub-sectors are pushing past 7-8% . The Why:  This is a perfect storm of high diesel prices, expensive maintenance/parts, and fluctuating spot rates. Many operators who got in during the post-COVID boom are now underwater. 2. Accommodation and Food Services (Restaurants) No surprise here, but the numbers are validating the stereotype. The Data:  Restaurants continue to struggle with high default rates, consistently ranking among the worst performers in the SBA portfolio. The Why:  A brutal combination of rising food costs, skyrocketing labor expenses, and consumers pulling back on discretionary spending. Margins are too thin to absorb any mistakes. SBA Loan Size Matters Another critical finding for brokers: The size of the loan is a major predictor of performance. Small loans (<$350k)  are seeing significantly higher default rates. These borrowers are often less capitalized and have fewer resources to navigate a downturn. Large loans ($2M+)  are performing much better, indicating that larger, more established businesses are managing the current economic environment far more effectively. The Takeaway The data is shouting at us. In 2026, successful brokering isn't about volume; it's about selection . A $2M deal for a dental practice is infinitely more valuable, and likely faster to close, than chasing five separate $400k trucking deals that will get stuck in underwriting or default in six months. Adjust your marketing spend and your outreach accordingly.