Laws & Legislation


07 02 2013

07 02 2013

New House Bill Could Help Small Businesses Access Capital

Rep. Nydia M. Velazquez (D-NY), has introduced two bills that aim to help individuals gain access to credit for small business and to obtain small business loans.

The Strengthening Entrepreneurs’ Economic Development (SEED) Act would address the difficulties that small business owners face when trying to obtain loans and credit. If passed, the act would open the credit market to independent business owners, especially small firms.

The second piece of legislation that Velazquez is promoting would make efforts to foster a small business and federal market environment that is more welcoming to women entrepreneurs. Legislation would include provisions to create a more equitable process for women to procure loans.

Velazquez explained the reasoning behind her proposal, stressing the importance of small businesses to national economic growth.

“Small businesses are the engines of economic growth and our best hope for creating new jobs during tough economic times,” Velazquez said. “By fostering an environment conducive to entrepreneurship, we can create good paying jobs and lead our nation back toward prosperity.”

Struggling to get credit

Although it has become somewhat easier for entrepreneurs to obtain credit since the financial crash of 2008, many lending institutions are still operating under strict rules and denying loans to many individuals.

In May of this year, 17.3 percent of small business loan applications were approved, a 7.1 percent increase from May 2012. Even though these improvements are significant, many of the remaining 82.7 percent of applicants who lost out on loans are struggling to stay afloat.

Velazquez further explained that, even in a thriving economy, it is difficult for small business owners to obtain loans, and that in the tough current market, these restrictions stall success and slow growth across the board. “For our economy to truly recover, the small-loan market needs to be restored,” said Velazquez.

Despite an overall consensus that small businesses are important to the economy, traditional lenders have been slow to restore flexible lending practices.

“It is clear that many financial institutions are not lending to small businesses at the same pace as before the financial crisis,” Velazquez noted.

Velazquez hopes that her bills will help ease these problems for small business owners as a way to propel business forward across the company.

If small business owners are having trouble getting a working capital loan or a merchant cash advance, they can turn to alternative lenders, like National Funding, for help.

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General Acceptance

Any applications submitted electronically shall have the same force and effect as if the application bore an inked original signature(s). The above information, together with any accompanying financial statements, schedules, or other materials, is submitted for the purpose of obtaining credit and is warranted to be true, correct, and complete.


US Patriot Act:

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person and business that seeks a business loan. What this means for you: When you apply for a loan, we will ask for your business name, address, and Tax Identification Number. We will also ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.


For Loan/Merchant Services:

The Merchant and Owner(s)/Officer(s) identified in the application (individually, an “Applicant”) each represents, acknowledges and agrees that (1) all information and documents provided to National Funding, Inc. (“NF”) including credit card processor statements are true, accurate and complete, (2) Applicant will immediately notify NF of any change in such information or financial condition, (3) Applicant authorizes NF to disclose all information and documents that NF may obtain including credit reports to other persons or entities (collectively, “Assignees”) that may be involved with or acquire commercial loans having daily repayment features and/or Merchant Cash Advance transactions, including without limitation the application therefor (collectively, “Transactions”) and each Assignee is authorized to use such information and documents, and share such information and documents with other Assignees, in connection with potential Transactions, (4) each Assignee will rely upon the accuracy and completeness of such information and documents, (5) NF, Assignees, and each of their representatives, successors, assigns and designees (collectively, “Recipients”) are authorized to request and receive any investigative reports, credit reports, statements from creditors or financial institutions, verification of information, or any other information that a Recipient deems necessary, (6) Applicant waives and releases any claims against Recipients and any information-providers arising from any act or omission relating to the requesting, receiving or release of information, and (7) each Owner/Officer represents that he or she is authorized to sign this form on behalf of Merchant.(8) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (9) this request is for business and not for consumer purposes.


For Equipment Services:

I hereby certify: (1) the information provided is true and correct, (2) you are hereby authorized to investigate all bank, credit, and trade references, and said references are hereby authorized to release any requested information to you or your nominee, (3) such authorization shall extend to obtaining personal credit profile in considering this application and subsequently for the purposes of update, renewal or extension of such credit or additional credit and for reviewing or collecting the resulting account, (4) this information may be transmitted by us to you and by you to underwriter(s) for the purpose of granting me credit, either electronically or manually, and that by submitting this application, I take full responsibility for transmission thereof, (5) I am over 18 years of age, (6) I acknowledge my rights under the Fair Credit Reporting Act, (7) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (8) this request is for business and not for consumer purposes.


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The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status or age (provided the applicant has the capacity to enter into the binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. If for any reason your application for business credit is denied, you have the right to a written statement of the specific reasons for the denial. To obtain the statement, please write to National Funding Inc., 9820 Towne Centre Drive, San Diego, California 92121. Funding amount and credit approval is subject to a full credit profile review.