Fraud Charges Won't Help Small Business Lending Pioneers

Candace Klein, founder and CEO of SoMoLend LLC, speaks at the annual Milken Institute Global Conference in Beverly Hills, Calif. on Apr. 29 Photograph by Jonathan Alcorn/Bloomberg

Since launching SoMoLend, a startup that connects small businesses seeking loans with banks and individual lenders, Candace Klein has been an outspoken proponent of the JOBS Act, touting the law’s potential to unleash a flood of financing for small firms. Peer-to-peer lenders such as Lending Club and Prosper have already shown that individuals are willing to lend consumers billions, and Klein sought to bring the same crowdfunding principles to small businesses seeking loans.

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