Beginning early 2010, after the Great Recession, when the American housing market blew up and the world fell into a financial crisis, traditional banks like Chase or Citi were unwilling to continue the fresh and you will small businesses one borrowing. While the global financial markets slowly recovered, both self-regulation and government regulation over conventional banks, meant that underwriting standards for new loans increased to such a level that most small businesses were no longer eligible to borrow from the regular banking system.
The fresh “new” underwriting requirements of your own conventional lenders kept a big emptiness in lending in order to small enterprises and you can merchants similar.