FinTechs plea for COVID-19 measures that better support small businesses

The Canadian Lenders Association (CLA), a group that includes FinTechs and alternative lenders, has sent a letter to government officials calling for the government to extend its current economic stimulus plan to include alternative lending options. In the letter, they openly support the CAD 10 billion stimulus plan but express concern that, if FinTechs and alternative lenders are not included, tens of thousands of small businesses may not be adequately served and could fail. It is important to note that the CLA is not asking for additional capital to be included in the plan, rather just that FinTechs and alternative lenders be included.

The CLA’s plea to the Canadian government is similar to that of FinTechs in the United States, which are lobbying their government to allow tech-focused lenders to be part of any stimulus plan aimed at supporting small businesses.