SMBLender

SMB Lender is a platform to streamline the lending process for Small-medium sized businesses powered through Filecoin’s FVM.

Entrepreneurs and business owners in the United States face many obstacles securing capital to start, operate, and grow their small businesses. As forced shutdowns, limited capacities, and stricter regulations continue to place strain on businesses, business owners are seeking financial assistance at greater rates; however, even during times of economic prosperity, acquiring capital for a business has been fraught with complications. The emerging use of blockchain technology in financial services has the potential to transform small business lending and improve capital access for businesses excluded by conventional lending processes.

The main problem is, of course, Access to capital. Most small businesses do not have the financial resources necessary to thrive or, in some cases, survive without borrowing. Small business loans provide some assistance, but current programs have considerable room to improve. In 2019, only 51% of small businesses reported receiving their requested loan amount while one in 10 received no funding at all. The COVID-19 pandemic created a staggering need for financial assistance for businesses, leading to the PPP loans of march 2020. Its goal was to provide aid to small businesses. However, the PPP also served to highlight the cracks in the small business loan system. Some banks prioritized existing customers, and others did not accept applications unless the business had a checking account, a credit card, and a previous loan with that institution. Fraud was also a problem within this system.

Blockchain technology is the key to facilitate the application and loan process and avoid fraud. Since all the activities on a blockchain platform are visible, SBA lenders can decide credit worthiness without an extensive application process and using visible collaterals. Of course the application process and validation is important, but this can be semi-automated and have a base in a smart contract instead of trust on third parties.

SMB lender is an integral platform for loans on the FEVM totally on Chain. We have our own FEVM wallet as a native Android application, compatible with all Filecoin and ERC20 token operations, in addition to the management of the requested loans through the control of the smart contract affiliated with this wallet, in addition to the ability to share the KYC files through lighthouse and be able to facilitate the loan approval for the lender. In addition, a web platform for the lender, deployed with Sphereon and where you can manage the smart contracts of the borrowed money and business profits.