Business Loans at Sam’s Club (NYSE:WMT)
Small businesses in need of a loan may be turning to a new, unconventional partner for its lending needs. Sam’s Club, a part of Wal-Mart Stores, Inc. (NYSE:WMT), is piloting a program that offers small-business loans online.
MarketWatch reports that Sam's Club will be testing a program to offer qualified members small-business loans in amounts ranging from $5,000 and $25,000. The service would be offered online through a partnership with Superior Financial Group.
In its announcement, the retailer cited studies in which small businesses weren't able to get loans.
The pilot program will focus on serving "Main Street minority-, women- and veteran-owned small business owners as well as micro-entrepreneurs."
Members who apply for a small business loan online during the pilot will receive a $100 off the application fee, a 20% discount and a 7.5 APR, which is 25-basis point discount, the company said. The terms of the loans will remain at 10 years.
It's an interesting twist that Wal-Mart, which has been accused of harming small businesses with its aggressive pricing, scale and business methods, is offering a way to help the Mom and Pops.