Receiving financial assistance through the Paycheck Protection Program and Economic Injury Disaster Loan have proven to be a challenging process for many small businesses. With an over-extended application system and funding pool, efforts to use these programs have been futile for many. This has led to many small businesses exploring other online loan products as an option for their funding needs. And while it is great that there are so many reputable options to choose from, this does place small businesses in a very vulnerable position when it comes to the not so reputable options out there. Given the urgent need for funding that many small businesses are experiencing in the wake of COVID-19, if not careful, they may find themselves prone to predatory lending practices.
Recognizing the need to shine a light on this issue, the California Association for Micro Enterprise Opportunity Network (CAMEO) has put together a Predatory Lending Awareness Campaign & Social Media Toolkit. CAMEO is comprised of over 220 organizations, agencies, and individuals all dedicated to providing small businesses with the financing know how, business management training, and technical assistance needed to help further growth and success.
The Predatory Lending Awareness Campaign and Social Media Toolkit provides small businesses with resources that identify questions and considerations needed for when entertaining the idea of using an online loan product. In addition to the predatory lending toolkit, CAMEO’s website offers a variety of resources including a Coaching Academy, MicroLending Academy, Policy Overview, and much more. To learn more about CAMEO, please visit their website at www.cameonetwork.org.