Expensive Small Business Lenders Are Unregulated. Should They Be?

The Main Street credit gap has become such a well-accepted fact that whole waves of startups have launched, often armed with impressive-sounding technology, to improve small business owners’ access to capital. Many of those new firms, including OnDeck, which has loaned small businesses more than $1 billion since 2007, and Kabbage, which loaned more than $200 million last year, are largely unregulated.