To address the hardships that small US businesses are facing during the pandemic, a proposed lending program would match local investors with local businesses. Financial Services Regulatory & Enforcement Lauren Pryor partner writes about the model, which she and her colleagues designed, in a July 8 Bloomberg Law article.

Under the auspices of a government agency or an experienced non-governmental group, the "Community Business Capital" (C2B) program would encourage people who "patronize and appreciate local businesses" to make small investments in "the fabric of their communities," Lauren says.

It's a "community-based twist to the peer-to-peer lending model," Lauren says. "Community-minded investors would be able to direct capital to a particular business participating in the program, or to categories of local businesses, such as restaurants or hardware stores."

Read Lauren's article for more details about the program, and see her earlier post on this blog about the "hackathon" that inspired the idea.

Visit us at mayerbrown.com

Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the "Mayer Brown Practices"). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe - Brussels LLP, both limited liability partnerships established in Illinois USA; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown JSM, a Hong Kong partnership and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.

© Copyright 2020. The Mayer Brown Practices. All rights reserved.

This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.