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India's <keyword id="22879519" type="General" weightage="20" keywordseo="organised-gold-loan-market" source="keywords">organised gold loan market</keyword> is projected to double in the next five years to Rs 14.19 lakh crore despite expected moderation in growth due to stricter regulations, according to a <keyword id="19938520" type="General" weightage="20" keywordseo="PwC-India" source="keywords" meta.keywordsubtype="org" meta.entityname="PwC India" meta.hostid="153" meta.entityid="PwC India">PwC India</keyword> report. In fiscal 2023-24, the organised <keyword id="21627536" type="General" weightage="100" keywordseo="gold-loan-market" source="keywords">gold loan market</keyword> demonstrated substantial growth, reaching a valuation of Rs 7.1 lakh crore, according to the report titled 'Striking gold: The rise of India's gold loan market' . "It is expected to reach around Rs 14.19 lakh crore by FY 2029 at a five-year CAGR of 14.85 %," it said. Indian families own massive quantities of gold, estimated at 25,000 tonne. Existing gold holdings with <keyword id="19895507" type="General" weightage="20" keywordseo="Indian-households" source="keywords">Indian households</keyword> are valued at roughly Rs 126 lakh crore, the report said. It further said the gold loan market is poised to see moderate growth over the next two years, as gold lenders are facing increased scrutiny from regulatory authorities regarding loan-to-value (LTV) maintenance and auction-related procedures. "The second-largest player in the gold loan market being inactive would have an impact on market growth in FY25," the report said. Also, the <keyword id="19899808" type="General" weightage="20" keywordseo="rbi" source="keywords">RBI</keyword>'s advisory to <keyword id="19938300" type="General" weightage="20" keywordseo="NBFCs" source="keywords">NBFCs</keyword> on cash disbursement, which limits the amount of cash disbursal to Rs 20,000, could push customers to rely on the unorganised sector. The regulator has also raised concerns about the evaluation process for lending activities through fintech startups. The increased regulatory scrutiny and revised guidelines have led to a dip in the share prices of leading NBFCs, PwC said. "Gold loan lenders are expected to use this period to ensure that they are compliant with all regulatory guidelines while undertaking several measures to optimise their middle and back offices through digitisation initiatives," it said. Lenders are also expected to implement cost optimisation initiatives that will help drive up the bottom-line profitability of their companies and enhance investor confidence which has slightly depleted as a result of the regulatory scrutiny. Furthermore, the report said rising gold prices over the past financial year may also drive lenders to take a cautious approach to lending rates and pricing as any downward movement in gold prices will result in a substantial LTV breach that will further create operational issues for lenders in the form of auctions. "The growth of the gold loan market is expected to be steered by both banks and NBFCs," the report said. The emergence of digital gold loan aggregator platforms and their strategic collaboration with gold loan lenders such as banks and NBFCs will be a key driving factor for the growth of the industry, enabling gold loan lenders to tap into a previously untapped segment of digitally savvy customers. "While the forecasted growth of the gold loan market means potential growth for all players, the impact on the players may vary. Banks are expected to benefit from their lower interest rates," PwC said. Jaikrishnan G, Partner (Financial Services), PwC India said lending against gold is the oldest form of credit. It remains one of the most attractive options for consumer as well as lenders. "High return-on-assets, manageable risk, timely regulatory interventions, growing adoption, tech-enabled operating models have all contributed to sector growth. As India embraces the vision of Viksit Bharat, gold loans will provide much needed liquidity and credit access to growing small and medium entrepreneur segments," he said. The report further said growth by NBFCs is expected to be fuelled by their expansion and increased outreach to regions with low penetration, bringing new credit customers to the financial services ecosystem. Also, fintechs will play a critical role in bringing in the required technology and innovation into the industry, thus helping lenders to create unique product propositions to boost growth, it said. <keyword id="20037818" type="General" weightage="20" keywordseo="South-India" source="keywords">South India</keyword> contributes to a vast extent, as it emerges as the dominant market for gold loans, with 79.1% share of the total outstanding loans. The report also noted that an assumption can be made that the entire Rs 126 lakh crore worth of gold will not be available for pledging due to various reasons like jewelry belonging to religious institutions, jewellery with emotional value, and certain jewellery held by individuals who are not in need of finance.

Gold loan market projected to double in 5 years to Rs 14.19 lakh crore, says PwC India's report

<keyword id="19945815" type="General" weightage="20" keywordseo="startups" source="keywords">Startups</keyword> in <keyword id="19895063" type="General" weightage="20" keywordseo="India" source="keywords">India</keyword> have high expectations from this year's upcoming <keyword id="19908389" type="General" weightage="20" keywordseo="Union-Budget" source="keywords">Union Budget</keyword>. Early-age startups hope for the removal of angel taxes, while <keyword id="20677283" type="General" weightage="20" keywordseo="health-tech-startups" source="keywords">health tech startups</keyword> expect increased <keyword id="19913964" type="General" weightage="20" keywordseo="funding" source="keywords">funding</keyword> for the sector. Startups function as engines of economic growth, playing a crucial role in generating new jobs, ideas, products, and services. As of December 2023, the Department for Promotion of Industry and Internal Trade (DPIIT) had recognised 1,17,254 startups. These startups have reportedly created over 12.42 lakh direct jobs, significantly impacting the economy. Eklavya Gupta, CEO and Co-founder of Recur Club, stated, "We are confident that India's business credit landscape is on the brink of a major digital overhaul. FinTechs are at the forefront of this change, deploying innovative technologies and utilising in-depth data analytics to streamline and expand <keyword id="20974354" type="General" weightage="20" keywordseo="credit-access" source="keywords">credit access</keyword>." He added, "While the current allocation of Rs 10,000 crore is an excellent initial step, realising the full capabilities of India's SME and startup ecosystem will necessitate greater investment, especially in credit guarantee schemes." Vinod K Singh, Co-Founder and CTO of Concirrus, expressed his expectations from the budget: "As the Union Budget 2024-25 approaches, we hope the government will address the pressing issue of the 'angel tax.' Eliminating this tax will enhance capital formation and attract vital <keyword id="19895633" type="General" weightage="20" keywordseo="investments" source="keywords">investments</keyword>. Streamlining the duty structure and reducing high tariffs on electronic inputs are also crucial to bolstering the startup ecosystem and driving innovation. Expanding the Fund of Funds and introducing low-interest loans would be beneficial." Rajiv Lamba, co-founder and CEO of AI-enabled customer feedback platform Surveysensum, added, "Just as the government has prioritised financial inclusion, it should now focus on <keyword id="22405441" type="General" weightage="20" keywordseo="technological-inclusion" source="keywords">technological inclusion</keyword> to propel India to the next stage of growth. By training youth in AI, the government can make a strategic investment in the nation's technological future. Given the rapidly evolving job market, a substantial increase of 20 to 25 percent in budget allocation should be considered for AI-based skill development and entrepreneurship." He further emphasised, "Incentivizing investment in <keyword id="20328842" type="General" weightage="20" keywordseo="AI-startups" source="keywords">AI startups</keyword> and R&amp;D initiatives can boost local innovation in the AI space. The last budget introduced a deep tech fund of Rs 1 lakh crore with a 50-year interest-free loan period; the government should now establish a clear and transparent mechanism for access to this fund." Raja S, founder and MD of Hearzap, highlighted the expectations of health tech startups: "Health tech startups are eagerly anticipating increased funding that could usher in transformative advancements. This crucial investment holds the promise of extending cutting-edge healthcare solutions to rural and underserved areas, effectively bridging existing gaps in care. The upcoming budget ensures that every individual in our diverse population, from the youngest to the oldest, can access essential health services, including specialised care." Discussing taxation for startups in India, Vvihan Gulati, Director of Mediagraphics PR, commented, "Removing the angel tax is a highly anticipated move that would benefit early-stage startups and their investors. It would foster a more favourable environment for innovation and growth, allowing startups to attract much-needed capital without the burden of excessive taxation. This change could significantly enhance the ease of doing business and contribute to the overall growth of the startup ecosystem in India." The Union Budget 2024 will be tabled on July 23 by Union Finance Minister Nirmala Sitharaman. With this, she will become the first Finance Minister to deliver seven consecutive budgets, surpassing Morarji Desai. She presented the interim budget on February 1 of this year.

Startups demand angel tax elimination, incentives on investments in upcoming budget

<ul class="summary-list"><li>The SBA expanded its loan programs to support investments in clean energy businesses.</li><li>It will also let lenders apply to extend loan sizes up to $2 million for climate-related projects.</li></ul>The Small Business Administration is <a target="_blank" class="" href="https://www.businessinsider.com/sba-loans-small-business-lending-rules-change-2023-8">expanding its loan programs</a> to support investments in <a target="_blank" class="" href="https://www.businessinsider.com/us-renewable-energy-transition-solar-electric-vehicles-hit-records-2024-2">clean energy</a> and <a target="_blank" class="" href="https://www.businessinsider.com/biden-administration-wants-boost-clean-energy-pay-through-tax-credits-2024-6">climate-friendly businesses</a>.The SBA announced on July 22 that it is increasing the maximum loan available through its Community Advantage program — which provides financing to entrepreneurs in underserved markets, like low-income communities — with increased flexibility for <a target="_blank" class="" href="https://www.businessinsider.com/how-the-climate-crisis-can-change-make-economy-better-resilient-2023-9">climate-focused projects</a>.The SBA will increase the maximum loan amount for active lenders to $500,000 from $350,000. It is also creating an application process for lenders to expand their loan size up to $2 million for climate-focused projects or $1 million for general projects.Lastly, the SBA will create an application for Community Advantage lenders to expand their geographic reach.The changes are part of the SBA's green lender initiative, which aims to enroll more climate-focused lenders in SBA programs and raise capital <a target="_blank" class="" href="https://www.businessinsider.com/jobs-climate-manufacturing-work-best-places-georgia-carolinas-2024-1">to support sustainable businesses</a>.Isabel Guzman, the administrator of the SBA, said in a statement that the green lender initiative aims to support "mission-driven climate lenders" and help fund "the small business clean energy transition.""Small businesses and homes account for more than one-third of US emissions, so it is vital that they are part of the solution," Guzman said.SBA loans, provided through banks or other financial institutions, help entrepreneurs raise capital.The SBA offers three main types of loans:<ul><li>Microloans range from $500 to $50,000 and are offered through nonprofit community-based lenders.</li><li>504 loans provide financing up to $5.5 million for major fixed assets like real estate and are provided through certified development companies — nonprofits regulated by the SBA to provide loans.</li><li>7(a) loans provide long-term financing up to $5 million for general small business investments and are offered through most banks. The SBA guarantees 85% of 7(a) loans up to $150,000 and 75% on loans larger than that amount.</li></ul>Community Advantage — the program being expanded by the green lender initiative — is a segment of the 7(a) loan program."SBA loans have been assisting small businesses and the lenders who support them for decades," Katie Frost, associate administrator for the SBA Office of Capital Access — which helps businesses find lenders — said in a <a target="_blank" class="" href="https://www.sba.gov/article/2024/07/22/biden-harris-administration-opens-sba-loan-programs-new-green-lenders-help-small-businesses-meet">statement</a>. "The SBA is excited to welcome green banks and similar institutions into SBA lending, to capitalize on these benefits and broaden their support to more American small businesses."<h2 id="dd41d010-97e4-4f2c-8584-f56dcf925fb5">SBA focuses on climate-friendly businesses</h2>The expansion of the SBA's loan programs comes after several years of record entrepreneurship. Under the Biden administration, there have been <a target="_blank" class="" href="https://www.whitehouse.gov/briefing-room/statements-releases/2024/06/12/statement-from-president-joe-biden-on-a-record-18-million-small-business-applications/#:~:text=Today%2C%20my%20Administration%20announced%20over,powered%20our%20economic%20comeback%20continues">18 million small business</a> applications. Additionally, in past years, the SBA has <a target="_blank" class="" href="https://www.businessinsider.com/sba-loans-small-business-lending-rules-change-2023-8">revised its loan requirements</a> to expand outreach to underserved communities.The SBA's focus on climate-friendly businesses is part of the Biden administration's green energy goals, which include a carbon pollution-free power sector by 2035 and a <a target="_blank" class="" href="https://www.whitehouse.gov/briefing-room/statements-releases/2023/04/20/fact-sheet-president-biden-to-catalyze-global-climate-action-through-the-major-economies-forum-on-energy-and-climate/#:~:text=Putting%20the%20Power%20Sector%20on%20a%20Path%20to%20Net%20Zero%20Emissions&amp;text=President%20Biden%20has%20set%20an,by%20no%20later%20than%202050.">zero-emission economy</a> by 2050.The 2022 Inflation Reduction Act — the largest <a target="_blank" class="" href="https://www.businessinsider.com/house-passes-inflation-reduction-act-sending-it-to-biden-2022-8">climate-focused federal package in US history</a> — approved spending on green energy projects, including authorizing the $27 billion <a target="_blank" class="" href="https://www.epa.gov/greenhouse-gas-reduction-fund">Greenhouse Gas Reduction Fund</a> through the Environmental Protection Agency.The green lender initiative will help small businesses tap into this fund, according to the SBA."The green lending initiative will help advance EPA's and SBA's shared goals of ensuring that communities and small businesses have access to the capital they need to support and benefit from a cleaner and more sustainable economy," Michael S. Regan, EPA administrator, said in a statement.Are you a small-business owner or entrepreneur scaling a startup right now? This reporter wants to hear from you. Please reach out at <a target="_blank" class="" href="mailto:jtowfighi@businessinsider.com">jtowfighi@businessinsider.com</a>

The Biden administration is giving entrepreneurs a shot at loans up to $2 million for climate-focused projects

<ul class="summary-list"><li>GlobeCruises says its three-year world cruise will sail in April 2025, starting at $181,790 per person.</li><li>The voyage would visit 413 ports in 171 countries, although the startup has yet to acquire a ship.</li></ul>A startup is inviting travelers to <a target="_blank" href="https://www.businessinsider.com/inside-cabin-residential-cruise-ship-villa-vie-photos-retired-couple-2024-8">live on a cruise ship</a> for three years as it sails around the world.GlobeCruises says its 1,095-day voyage will depart Barcelona on April 12, 2025. From there, it would visit 413 ports in 171 countries before concluding in Southampton, England, on April 13, 2028.Along the way, travelers could experience the night markets of Taiwan, the beaches of Brazil, the wildlife of Tanzania, and the landmarks of Spain.The startup's COO, Robert Dixon, told Business Insider that the voyage was designed to chase warm weather. But according to its <a target="_blank" href="https://www.goglobecruising.com/the-map/">itinerary</a>, destinations will stretch as far south as chilly Antarctica and as far north as Longyearbyen, Norway.<div type="image" title="Stock photo shows Santorini, Greece." height="1414" width="1885" msid="112720568" hostid="261" sizebytes="348236"></div>Dixon said the cruise would also dock overnight at 355 of the 413 ports — in some cases for as long as seven nights, like in Singapore — giving guests more time to explore the destinations.Inside cabins start at about $181,790 per person, while the more luxurious suites cost $624,150 per person. The cheapest option costs about $166 per person and day.Demand has been growing in recent years for extended cruises, but their duration is typically several months, not years. <a target="_blank" href="https://www.businessinsider.com/oceania-sold-out-six-month-world-cruise-sets-sail-2024-1">Oceania's 2024 six-month world cruise</a> sold out within 30 minutes of reservations opening in 2022, the premium cruise line said at the time. Cruise lines like Regent Seven Seas and <a target="_blank" href="https://www.businessinsider.com/silversea-new-ultra-luxury-cruise-ship-winning-over-younger-guests-2024-7">Silversea</a> operate annual around-the-world sailings, most of which are capped at four to six months.<h2 id="afe17fc3-7bb2-4970-adca-2acc3f051a0b">GlobeCruises is promising an activity-filled ship</h2><div type="image" title="rendering of business center on GlobeCruises" height="1150" width="2300" msid="112720534" hostid="261" sizebytes="240370"></div>GlobeCruises says its vessel will have amenities like a gym, a movie theater, a nightclub, and rentable offices. To pass the time, guests could take a dip in the pool, crack open a new book in the library, or relax in the spa.Kendra Holmes, GlobeCruises' CEO, said she envisions at least two pools and restaurants and "as many bars and lounges" as possible, but no casino — which is a popular feature of some cruises.The company also promises a scuba diving certification program and homeschooling opportunities for its youngest guests. The ship would host entertainers and chefs local to the port stops, as well.<h2 id="b9923f01-c474-45c5-b30d-2c073b062908">The concept is similar to Life at Sea</h2><div type="image" title="A rendering of Life at Sea Cruises' MV Lara" height="1830" width="2400" msid="112720570" hostid="261" sizebytes="203268"></div>GlobeCruises' plans are similar to those of now-defunct <a target="_blank" href="https://www.businessinsider.com/life-at-sea-never-ending-cruise-does-not-have-ship-2023-11">Life at Sea Cruises</a>. The latter canceled its planned three-year voyage in November 2023, two weeks before its departure, after failing to secure enough funding to purchase a ship.Dixon and Holmes previously worked with Life at Sea. Holmes served as CEO of its parent company, <a target="_blank" href="https://www.businessinsider.com/life-at-sea-cruises-three-year-sailing-delayed-2023-10">Miray Cruises</a>, until her departure about a week before the company canceled its global voyage.Dixon told BI that he helped develop the concept for Life at Sea and later brought it to Miray. He said he left the team in late October 2023, a couple of weeks after Miray said it couldn't acquire a vessel.In January, 78 would-be Life at Sea cruisers sent a letter to Markenzy Lapointe, the US attorney for the Southern District of Florida, asking him to <a target="_blank" href="https://www.businessinsider.com/life-at-sea-passengers-3-year-cruise-demand-criminal-probe-2024-1">investigate Miray Cruises</a> for criminal fraud. The letter accused the company of using about $16 million of its customers' funds to pay for a ship it didn't purchase.In July, <a target="_blank" href="https://www.businessinsider.com/life-at-sea-cruises-three-year-sailing-delayed-2023-10">Life at Sea Cruises</a> filed for bankruptcy.<div type="image" title="rendering of dining room on GlobeCruises" height="1725" width="2300" msid="112720535" hostid="261" sizebytes="307908"></div>The company's demise is "in the past," Holmes told BI."I can't dwell, but it's terrible it happened," Holmes said. "We all put our hearts and souls into it, and at the end of the day, it fell apart. I hate to say 'shit happens,' but shit happens."To avoid another failed launch, Dixon said GlobeCruises has partnered with ship management firm Anglo-Eastern. The Hong Kong-based company has "expressed their confidence in the viability of our project." (Anglo-Eastern did not immediately respond to a request for comment from BI.)But there is a caveat: GlobeCruises still needs a ship.<h2 id="b509b081-4afa-4f98-b1fd-f5fe569c4e4a">GlobeCruises doesn't have a ship — yet</h2><div type="image" title="rendering of a bar and lounge" height="1150" width="2300" msid="112720567" hostid="261" sizebytes="254786"></div>Holmes said GlobeCruises would use investor money — not guest deposits — to pay for its future vessel.Dixon told BI that he has already secured funding to "commit to" a ship and has narrowed the choice to three options that are currently in operation and would ideally accommodate 1,200 to 1,500 passengersHe said he aims to announce his final pick in early September and take ownership of the vessel in February 2025, two months before the start of the voyage.<div type="image" title="rendering of lounge on GlobeCruises" height="1150" width="2300" msid="112720575" hostid="261" sizebytes="228924"></div>In the meantime, guests can reserve the world cruise by signing a commitment contract. A 20% deposit would be due 14 days after GlobeCruises announces their ship of choice, and held in escrow until the sailing begins, Holmes said."At the end of the day, if we aren't able to get the investor support we need and we aren't able to acquire a ship, we're not going to sail," Holmes said. "That's something we're focusing on this time to make people feel more comfortable."Travelers who don't want to pay at least $181,790 can book cheaper and shorter segments of the cruise. Holmes also suggested guests get a <a target="_blank" href="https://www.businessinsider.com/millennial-gen-z-travel-debt-affirm-klarna-credit-cards-2024-8">travel loan</a> instead of selling their homes and cars. Some Life at Sea buyers had sold many of their belongings ahead of the ultimately canceled voyage.<h2 id="2ec88d86-8561-4a80-a231-e5430e396bbe">Rival cruise Villa Vie could soon set sail</h2><div type="image" title="Villa Vie Odyssey." height="1725" width="2300" msid="112720572" hostid="261" sizebytes="182420"></div>Holmes said several would-be <a target="_blank" href="https://www.businessinsider.com/residential-cruise-ship-startups-storylines-life-at-sea-struggling-2023-11">Life at Sea guests</a> have signed commitment contracts for her new project. (She declined to share the exact number.)<a target="_blank" href="https://www.businessinsider.com/villa-vie-residential-cruise-ship-odyssey-photos-2023-12">Villa Vie Residences</a>, a never-ending cruise startup, has also attracted some travelers who've been burned by the recent demise or delay of other residential cruise concepts, such as <a target="_blank" href="https://www.businessinsider.com/storylines-residential-luxury-cruise-ship-investors-ex-employees-2023-10">Storylines</a> and <a target="_blank" class="" href="https://www.businessinsider.com/victoria-cruises-line-travelers-refunds-residential-cruise-vcl-2024-2">Victoria Cruises Line</a>.<a target="_blank" href="https://www.businessinsider.com/residential-cruise-startup-condos-at-sea-photos-2023-10">Villa Vie</a> was founded by another Life at Sea alum, Mikael Petterson. But unlike the newer startup, Petterson's company already has a ship that could embark "any day now," he told BI in an email on Monday.Despite the two companies' shared history, Dixon said there's no bad blood. He said he wants Villa Vie to succeed."I want people to go on Petterson's adventure," Dixon told BI. "It's going to be a door opener for the whole industry. It makes it easier for us because then there's a bit of confidence in this whole concept."Are you sailing on a residential cruise ship like Villa Vie or have a tip? Contact the reporter at <a target="_blank" href="mailto:bchang@businessinsider.com">bchang@businessinsider.com</a> or on X <a target="_blank" rel=" nofollow" href="https://twitter.com/brittanymchang">@brittanymchang</a>.

A startup wants travelers to live on a cruise ship for 3 years. See what the $181,790 global voyage promises.

<ul class="summary-list"><li>"Sweaty startup" describes business ownership in traditionally blue-collar industries.</li><li>Sweaty startups are facing challenges from inflation and increased competition.</li></ul>Patrick Hocker, 35, never envisioned owning a <a target="_blank" class="" href="https://www.businessinsider.com/carbon-monoxide-nyc-rat-exterminator-clap-cheer-free-beer-2023-10">pest-control</a> company. He waited tables at 18, married young, had kids, and became a security guard.After meeting someone who worked in pest control, he got into the industry himself and, after a layoff, decided to start his own business in 2020. He knew his market in northern <a target="_blank" class="" href="https://www.businessinsider.com/moving-from-florida-to-virginia-pros-cons-cape-coral-weather-2024-2">Virginia</a> could be profitable because of its higher household incomes."I always said I wanted to own my own business one day, but I didn't want it to be in pest control," Hocker said. "Pest control is not sexy. It's dirty. It's hard, physical work."He said that he spent $5,000 on startup costs including new equipment for his company, Bluebird Pest Solutions, and that he relied mostly on word of mouth and Google reviews to build the brand.However, his four-person company isn't growing as fast as he hoped. He said he thought <a target="_blank" class="" href="https://www.businessinsider.com/why-costs-keep-rising-inflation-goes-down-eggs-tickets-insurance-2024-7">inflation</a> had made customers more budget-conscious.<div type="image" title="Patrick Hocker" height="819" width="1285" msid="112244113" hostid="261" sizebytes="51046"></div>"We've found that people are taking a lot more time this year to make a decision about who to hire, or if they're going to hire someone for pest control, there seems to be more of an emphasis on price over necessarily buying value in that service," Hocker said.Rising prices for vehicle-maintenance supplies and labor costs have eaten into his profits. He said he'd been "playing financial catch-up," as he's relied on this business as his family's sole source of income and cashed out his retirement fund to finance it.Hocker is running a "<a target="_blank" class="" href="https://www.businessinsider.com/sweaty-startups-millennial-business-owners-entrepreneurship-2021-5">sweaty startup</a>," a term coined by the entrepreneur Nick Huber, who owns nine such companies and has amassed communities on X and Reddit. Sweaty startups are <a target="_blank" class="" href="https://www.businessinsider.com/blue-collar-job-demand-growth-white-collar-layoffs-ai-2024-5">blue-collar businesses</a>, often in unglamorous or laborious fields like septic services, car washes, or lawn care. It's what your grandparents would've just called a small business, but it was a tongue-in-cheek answer to the Silicon Valley-style entrepreneurship being glorified in culture at that time. The community boasts success stories of profitable <a target="_blank" class="" href="https://www.businessinsider.com/22-year-old-bought-car-wash-passive-income-2023-1">car wash owners</a> and successful <a target="_blank" class="" href="https://www.forbes.com/advisor/business/start-a-vending-machine-business/">vending machine</a> owners."If you look at who is truly wealthy in these small towns, people who are eating at the nice restaurants and at the nice country clubs, you'll find that they didn't have new ideas at all," Huber told BI. "They didn't have tech startups aimed at changing the world, and they didn't build a billion-dollar business. Most of them did something common or boring, and they just did it uncommonly well."While some sweaty startup owners told Business Insider they loved the work and felt fulfilled, many said it was becoming harder to scale up. Though <a target="_blank" href="https://www.bls.gov/news.release/cesan.nr0.htm">consumer spending</a> has been on the rise since 2020, with a marked shift <a target="_blank" class="" href="https://www.businessinsider.com/hate-spending-consumers-economic-sentiment-retail-sales-inflation-gdp-growth-2024-4">from goods to services,</a> business owners generally blamed customers' tightening budgets. The reasons likely also include high interest rates and increased competition.<h2 id="f0d4786b-e1d6-4b04-aa79-57bb464d6dd3">Growth is challenging, but sweaty startups still provide plenty of opportunities</h2>Huber said he saw sweaty startups become more popular in the first two years of the pandemic following mass layoffs and a rethinking of work. While some entrepreneurs go into these businesses hoping to strike it rich — some have even <a target="_blank" href="https://www.reddit.com/r/sweatystartup/comments/15mcknl/how_to_handle_the_stigma_of_leaving_a_white/">left Wall Street jobs</a> to do so — many do so because they want more flexibility and time with family, financial risks be damned.Huber said that in some ways the <a target="_blank" class="" href="https://www.businessinsider.com/millionaire-small-business-entrepreneur-revenue-census-construction-finance-real-estate-2024-6">business landscape</a> is getting harder for founders to break into. <a target="_blank" class="" href="https://www.businessinsider.com/federal-reserve-interest-rates-jerome-powell-borrowing-costs-stock-market-2024-5">High interest rates</a> have hurt owners borrowing cash to open their businesses. While the number of sweaty startup founders seeking venture capital is likely low, Huber said he's known it to happen."A lot of venture-backed businesses are in a lot of trouble and hurting right now," Huber said. "They raised a lot of money in 2021 and 2022, and now they're seeing the economic headwinds from inflation and are unable to raise their next round. They're kind of stuck."Sources said <a target="_blank" class="" href="https://www.businessinsider.com/private-equity-firms-start-recruiting-early-investment-bank-apollo-kkr-2024-6">private equity</a> firms have been eyeing smaller businesses in these industries, which could tighten competition. For instance, private equity firm <a target="_blank" class="" href="https://www.businessinsider.com/executive-coaching-benefits-according-to-graham-weaver-ceo-alpine-investors-2024-7">Alpine Investors</a> has partnered with <a target="_blank" href="https://alpineinvestors.com/portfolio/">hundreds of businesses</a> across industries such as HVAC, plumbing and electrical, roofing repair, and tree care.The American Investment Council, a lobbying and research organization for the private-equity industry, estimates that private equity owns only about 2.5% of all middle-market businesses, or those earning about $10 million to $1 billion, in the US. Still, some small businesses look to private equity to scale their businesses in different markets, even if that means overhauling operations in some cases."Small businesses partner with private-equity firms because they provide access to capital and organizational support to help companies grow," Drew Maloney, the council's president and CEO, told BI.Some business owners who left the corporate world to run a sweaty startup said it came with plenty of benefits but lots of stress about staying afloat.Stan Chen, 36, worked at <a target="_blank" class="" href="https://www.businessinsider.com/blackrock-news-updates">BlackRock</a>, then in mortgage sales, and then at a global payments company before getting into a sweaty startup. His family operated restaurants in Boston for decades, and after years in the corporate world, he wanted to transition to a service-type business.He said he "didn't want to have a boss, climb the corporate ladder, and deal with office politics." Referring to his family, he added, "If immigrants who barely speak English that came here with $20 can run a business of three to four restaurants and basically become millionaires and have a nice middle-class lifestyle, I'm pretty sure I can do it too."<div type="image" title="Stan Chen" height="1500" width="2000" msid="112244122" hostid="261" sizebytes="68286"></div>He saw that BerryClean, a house-cleaning service in San Francisco, was for sale. After meeting with the management and employees — who he said reminded him of his family — he acquired the company in July 2019.He said that when the pandemic hit he lost 90% of his business, but he applied for loans and improvised. The company built its own "mini Uber service," Chen said, offering rides in its 20 cars and minivans. When demand for cleaning picked up again, he sometimes worked 18-hour days to keep operations running. The company's washers and vacuums would regularly break down, and he would sometimes have to do laundry at his home to keep clients satisfied.Operations have grown recently, and he said he's seen staff get their lives better on track and "achieve the American dream." Despite the company's growth over the past few years, though, Chen said business had gotten tougher recently with growing competition in San Francisco. He said he had to raise prices to keep up with inflation. He noticed that people wanted to spend less on <a target="_blank" class="" href="https://www.businessinsider.com/how-to-start-cleaning-business-side-hustle-low-startup-costs-2023-2">cleaning services</a> in his area, and the company dug into profits to increase its advertising."A lot of people get into this kind of business for the wrong reasons, because they listen to a podcast or they're on social media, thinking it's easy money," Chen said. "It's not easy money — it's the hardest money there is. You have to earn your keep every day, and you have to get your hands dirty. If you don't do a good job, you're fired."Alejandro Florez, 27, the president of The Cleaning Pros of America in Bradenton, Florida, said the growing investments in janitorial companies in his area were in some ways antithetical to the idea of sweaty startups."A lot of small cleaning businesses are pulled up by the bootstraps, and we usually start them out of necessity as our only avenue of making money," Florez said.<div type="image" title="Alejandro Florez" height="817" width="1089" msid="112244119" hostid="261" sizebytes="35352"></div>Both of his parents were <a target="_blank" class="" href="https://www.businessinsider.com/frank-baez-earns-nyu-nursing-degree-used-to-be-janitor-2019-5">janitors</a>, and when he was a senior in high school he started a small cleaning company that he grew by knocking on doors and cold-calling. He relied on trial and error and supplier advice for pricing, production rates, and cleaning strategies for different facilities.He said this year he's had nearly $2 million in revenue with two dozen employees and over 30 clients. He hopes to grow over the next decade by expanding to Jacksonville or Orlando. Still, he said that because the pandemic helped the cleaning industry "massively," markets became much more saturated. He estimated that 45% to 55% of his overhead went to paying his employees."For our market, even though it's very profitable and attractive, there's a low barrier to entry," Florez said. "There's more people at the table wanting to eat from that table."Florez said the growth of private-equity investment in his area had made competition even more difficult. Since 2021, he said, he's been approached by a dozen private-equity firms wanting to invest in his company, but he's turned them down."When you get private equity into the mix, they're bringing a different dimension of business and being able to scale it differently," Florez said. "There are firms that can operate on 10% net profit, which I can't do. There are firms out there that are being a lot more aggressive."<h2 id="b453f9d2-5f80-484d-b4ca-0b542234b938">Trial and error to figure out what works</h2>For some sweaty-startup owners, staying ahead of the competition requires bouncing from company to company based on changing needs.Chris Salisbury, 35, has been an <a target="_blank" class="" href="https://www.businessinsider.com/best-side-hustles-for-introverts-2023-11">entrepreneur</a> since he was 16. He started a small house-painting business while in high school and a few other companies in his 20s.<div type="image" title="Chris Salisbury" height="600" width="800" msid="112244117" hostid="261" sizebytes="8160"></div>In 2016, he sold everything he owned; moved to Brooklyn, New York; and decided to start a new business while living in a wood shop. With two friends, he launched Spayce, a commercial cleaning and handyman company that worked with high-profile clients like BuzzFeed — Salisbury said the business brought in $120,000 in its first week and over $4 million in its first year.During the pandemic, Spayce manufactured Covid barriers and secured new contracts with clients. Salisbury also launched the brand We Paint Kitchen Cabinets, which he sold a year later."I pivoted 100 times since COVID happened, but it did initiate the need to automate and start combining all of the things that I learned how to do by hand and being around these tech companies," Salisbury said.Salisbury and his business partner then launched nuDoors in July 2023, specializing in cabinet-door replacements made mostly of recycled material. Though he didn't have much experience in the cabinet industry, Salisbury pulled from his past companies and asked successful people in the industry for help.Salisbury said he and his partner spent over $1 million on new equipment to better automate their manufacturing processes but didn't spend a penny on advertising. He added that the company had grown each month since it was launched and that he expects it to be profitable by next year."The smaller shops are going out of business, not having any workers because they're doing the old way of doing things, and no one's filling the void between the big guys that are too big to talk to you and the small guys going out of business because they can't compete," Salisbury said.Are you a sweaty startup owner or manager? Reach out to this reporter at <a target="_blank" href="mailto:nsheidlower@businessinsider.com">nsheidlower@businessinsider.com</a>.

Blue-collar entrepreneurs say it's getting harder to turn a profit as competition for 'sweaty startups' heats up     

New Delhi [India], February 23 (ANI): The Asian Development Bank (ADB) has greenlit a USD 23 million loan to foster the growth of fintech education, research, and innovation at the <keyword id="19906863" type="General" weightage="20" keywordseo="gujarat" source="keywords">Gujarat</keyword> International Finance Tec-City (GIFT) in <keyword id="19895063" type="General" weightage="20" keywordseo="india" source="keywords">India</keyword>. According to ADB, Gujarat International Finance Tec-City (GIFT), a state-owned enterprise, serves as a cornerstone for nurturing fintech ecosystems and financial services within India. Positioned as the country's premier international financial services center, GIFT has emerged as a burgeoning hub for fostering and nurturing local startups, catalyzing innovation, and propelling economic growth. ADB Economist <keyword id="20688619" type="General" weightage="20" keywordseo="kanupriya-gupta" source="keywords">Kanupriya Gupta</keyword> emphasized the transformative impact of India's fintech industry on business operations, economic prosperity, and future readiness. <keyword id="19983550" type="General" weightage="20" keywordseo="gupta" source="keywords">Gupta</keyword> underscored ADB's commitment to strengthening fintech education to enhance the efficiency and accessibility of digital and financial services across India. Gupta said, "The development of India's fintech industry has transformed how people do business, contributed to economic growth, and prepared the country for the future. ADB's assistance will help strengthen the country's fintech education to ensure that digital and financial services become more efficient and accessible in the future." The ambitious project spearheaded by ADB will see the establishment of an inclusive, sustainable, and climate-resilient International Fintech Institute (<keyword id="20688621" type="General" weightage="20" keywordseo="ifi" source="keywords">IFI</keyword>) within GIFT's premises. The IFI, in collaboration with renowned global institutes and universities, will offer cutting-edge fintech training programs aligned with industry standards and international best practices. A key focus of the institute will be on nurturing innovation and entrepreneurship, with a particular emphasis on supporting women-led startups through tailored incubation and acceleration services. Additionally, the IFI will forge strategic partnerships with industry stakeholders and venture capital funds to facilitate the growth and scalability of fintech startups. In line with ADB's commitment to fostering research and innovation, the program will channel resources towards exploring innovative solutions and technologies in various domains, including climate fintech, regulatory technology, social inclusion, and gender equality in finance. The initiative will also entail the development of a state fintech readiness index to gauge the ecosystem's preparedness and identify areas for improvement. ADB's unwavering dedication to promoting prosperity, inclusivity, resilience, and sustainability in the Asia-Pacific region underscores its broader mission to eradicate extreme poverty and foster sustainable development. With a membership comprising 68 nations, 49 of which are from the region, ADB remains steadfast in its pursuit of catalyzing positive change and driving economic progress across the region. As the fintech ecosystem continues to evolve and expand, ADB's intervention is poised to serve as a catalyst for driving innovation, fostering entrepreneurship, and unlocking new avenues for economic growth and financial inclusion in Gujarat and beyond. (ANI)

ADB approves $23 million loan to catalyze fintech development in Gujarat

<ul class="summary-list"><li>BlackRock has written off its investment in once-hot Indian tech company Byju.</li><li>The Indian education tech giant is facing legal and financial troubles.</li></ul>In another blow to education tech giant Byju's, investor BlackRock says its stake in the once-hot company is worth nothing.In 2022, the education tech company said it raised $800 million at a $22 billion valuation.BlackRock was the first investor to publicly signal the company's troubles. In a first-quarter summary for some of its funds, the asset manager valued its stake in Byju's at $0, a number that has not been previously reported. In October, BlackRock slashed its valuation of the startup to less than $1 billion, <a target="_blank" href="https://techcrunch.com/2024/01/11/blackrock-cuts-byjus-valuation-by-95-to-1-billion/">TechCrunch reported.</a>BlackRock invested in Byju's parent Think &amp; Learn through <a target="_blank" href="https://www.blackrock.com/us/individual/literature/first-quarter-report/fqr-retail-blackrock-science-and-technology-trust.pdf">various</a> <a target="_blank" href="https://www.blackrock.com/us/individual/literature/investor-education/bcat-commentary.pdf">funds</a>, all of which appear to have written off the investment in recent filings.HSBC, which is not an investor in Byju's, said in a recent research note that Dutch tech investor Prosus' stake in Byju was worth nothing. Prosus owns nearly 10% of the company and invested about $500 million in Byju's."We assign zero value to Byju's stake amid multiple legal cases and funding crunch. Previously, we valued ~10% stake in Byju's by applying 80% discount to the latest publicly disclosed valuation," the HSBC analyst wrote.The Bengaluru-based company is facing significant turmoil.Earlier this week, a group of lenders asked a US court to initiate bankruptcy proceedings against Byju's subsidiaries <a target="_blank" href="https://www.business-standard.com/technology/tech-news/byju-s-now-worth-zero-hsbc-warns-prosus-amid-legal-financial-troubles-124060700146_1.html">over a $1.2 billion loan.</a> The company also <a target="_blank" href="https://inc42.com/buzz/byjus-slashes-salaries-for-new-sales-hires-by-more-than-90/">cut the salaries</a> of new sales hires by 90% in an attempt to cut costs, local outlet Inc42 <a target="_blank" href="https://inc42.com/buzz/byjus-slashes-salaries-for-new-sales-hires-by-more-than-90/">reported</a> on Thursday.Byju's investors, including Prosus, are <a target="_blank" href="https://www.business-standard.com/companies/news/byju-s-egm-shareholders-vote-to-remove-ceo-raveendran-and-his-family-124022300919_1.html">seeking the removal of its CEO</a>, Byju Raveendran, and his family members from the board. The company's India CEO left in April, and it missed filing its 2023 financial reports.The digital and physical tutoring company was seen as a star in the Indian startup scene and even sponsored the Indian cricket team until 2023. It is backed by the Chan-Zuckerberg Initiative, Sequoia Capital, and Tencent, among others.Byju's first gained popularity during the pandemic for its unique approach to learning. The company faced challenges in 2022 after students began returning to schools and expensive acquisitions affected its bottom line.The company planned to<a target="_blank" href="https://www.bloomberg.com/news/articles/2023-07-26/star-founder-broke-down-in-tears-as-crises-engulfed-byju-s"> go public through a SPAC deal</a> in 2022, which did not ultimately pan out.Byju's and BlackRock did not immediately respond to requests for comment.Correction: This story has been updated to reflect that HSBC wrote about an investor's interest in Byju's. HSBC did not invest in Byju's.

India's once-hot startup Byju's was valued at $22 billion. Now, BlackRock says its investment is worth nothing.

It's an incredible feeling to finally become free of student debt, to feel the financial weight lifted off your shoulders after years of worrying about making payments.I've gotten to see this joy over the past year by helping people apply for debt cancellation through the government's Public Service Loan Forgiveness temporary waiver. The PSLF program cancels federal student loans for people who work in public-service jobs for 10 years, and the impact of relief is profound. I've seen school principals <a href="https://twitter.com/SecCardona/status/1616147253248270338" target="_blank" rel="noopener">finally be able to afford groceries</a> and teachers <a href="https://twitter.com/ontheBalledu/status/1480996772373843969?s=20&amp;t=jLbyADZQUB3nwd7-sG8Pcg" target="_blank" rel="noopener">weep in disbelief</a>. Some, like my sister who is a social worker for the Department of Veterans Affairs, even get a refund check for overpayments in addition to full cancellation.For the most part, my work has helped trigger <a href="https://twitter.com/bethbourdon/status/1493675662854561799" target="_blank" rel="noopener">celebrations</a>, but not always. After several of her coworkers were already on track to get their loans canceled, Rosey Olivero wrote to me with troubling news. She got a letter from her loan servicer saying she didn't qualify for cancellation. Rosey is a pediatric infectious-disease specialist who specializes in treating children with HIV. She's exactly the kind of public servant that PSLF was intended for. After investigating, we discovered the problem: She had refinanced her federal student loans in 2017 with a private lender.The vast majority of student loans, <a href="https://www.newyorkfed.org/medialibrary/interactives/householdcredit/data/pdf/HHDC_2022Q4" target="_blank" rel="noopener">about $1.6 trillion</a> worth, is owed directly to the federal government. But there are many private lenders that try to persuade borrowers to refinance with them. According to <a href="https://files.consumerfinance.gov/f/documents/cfpb_education-loan-ombudsman_report_2022-10.pdf" target="_blank" rel="noopener">the Consumer Financial Protection Bureau</a>, private lenders hold $128 billion in student-loan debt. These lenders lure people in with a <a href="https://www.businessinsider.com/biden-student-loan-forgiveness-stripped-away-refinance-private-loan-debt-2022-8">barrage of marketing</a> that promises thousands of dollars of savings through lower interest rates. Once someone agrees to refinance, the companies pay off their federal student loans in full and issue a brand-new private loan in the same amount but with different terms. In the process, borrowers forfeit many protections that come with federal student loans, including the chance to get their loans canceled.According to the lender's sales pitch, Rosey would save more than $100,000 over the long run by refinancing. At the time, that seemed like a good deal. But if she hadn't refinanced, she would have gotten the entire loan canceled. Today, she still has $90,000 to pay off. The devastating news was a gut punch.Most federal student-loan payments are still paused until <a href="https://www.businessinsider.com/student-loan-forgiveness-blocked-supreme-court-strikes-down-debt-cancellation-2023-5">later this summer</a>. But once payments resume, millions of people will be bombarded with letters, emails, and phone calls from private companies trying to persuade them to refinance their student loans. One private lender is even <a href="https://www.businessinsider.com/end-student-loan-payment-pause-sofi-files-lawsuit-block-relief-2023-3" rel="nofollow sponsored">suing the Department of Education</a> to resume payments sooner since they can't compete with a moratorium on student-loan payments. But reader, be forewarned: There are many reasons to avoid falling for their ploy.<h2>Rise of refinancers</h2>The student-loan-refinancing industry exploded in the wake of the 2008 financial crisis. <a href="https://www.nytimes.com/2010/05/09/magazine/09fob-wwln-t.html" target="_blank" rel="noopener">Many suddenly unemployed workers went back to school</a> in hopes that more education would make them more competitive in a recession. At the same time, <a href="https://www.demos.org/research/great-cost-shift-continues" target="_blank" rel="noopener">states were drastically cutting funding for universities</a> in an attempt to deal with their own fiscal problems, and universities <a href="https://www.cbpp.org/research/state-budget-and-tax/state-higher-education-funding-cuts-have-pushed-costs-to-students" target="_blank" rel="noopener">raised tuition</a> to make up for the shortfall. Total student debt <a href="https://www.democracynow.org/2012/4/25/1_t_day_as_us_student" target="_blank" rel="noopener">surpassed $1 trillion for the first time in 2012</a>. Sensing an untapped opportunity, a flurry of fintech startups cashed in with "innovations" that were little more than traditional predatory practices dressed up with new, internet-driven packaging.Before 2010, federal student loans were created by private institutions like Sallie Mae but guaranteed by the federal government — so if a borrower couldn't end up paying, the government would step in. Student debt was a moneymaking machine: Lenders would even package these guaranteed loans and sell them to investors. But it was a raw deal for the government, and in 2010, President Barack Obama <a href="https://www.nytimes.com/2010/03/31/us/politics/31obama.html" target="_blank" rel="noopener">cut out the intermediaries</a> and had the government start issuing federal student loans directly. Private lenders refused to stand by and let their cash cow dry up, so they pivoted to refinancing student loans. Startups like SoFi, LendKey, and CommonBond were soon joined by more-traditional lenders like Discover. And Navient, which spun off from Sallie Mae, quickly became a major refinancer.These private lenders have spent millions of dollars chasing down customers and lobbying against loan-assistance programs. In the first 1 ½ years of the pandemic, they collectively spent <a href="https://www.opensecrets.org/news/2021/08/student-loan-companies-spend-millions-lobbying-amid-extended-moratorium/" target="_blank" rel="noopener">$6 million</a> lobbying lawmakers to resume student-loan payments. And now, SoFi is <a href="https://www.businessinsider.com/end-student-loan-payment-pause-sofi-files-lawsuit-block-relief-2023-3" rel="nofollow sponsored">suing the Department of Education</a> to end the COVID payment pause. While data is sparse, SoFi spent $170 million in marketing in 2017, according to <a href="https://www.fastcompany.com/40539348/sofi-pays-premium-prices-to-acquire-its-prime-customers" target="_blank" rel="noopener">Fast Company</a>, and planned to spend $200 million in 2018.<div type="image" title="Supreme Court" height="2784" width="5568" msid="98306190" hostid="261"></div>Refinancing companies are able to grab customers for one reason: interest rates. The <a href="https://www.huffpost.com/entry/elizabeth-warren-student-loans_n_3240407" target="_blank" rel="noopener">high interest rates Congress</a> has set on federal student loans have allowed refinancing companies to turn a quick profit by offering some borrowers much-lower interest rates and promising smaller monthly payments. While this offer may seem like a godsend for cash-strapped graduates, it comes with a slew of downsides.<h2>If you refinance your student loans, you could pay more</h2>Many people who refinance actually end up paying <a href="https://www.ftc.gov/system/files/documents/cases/162_3197_sofi_draft_admin_compl_10-26-18_rc_not_rec.pdf" target="_blank" rel="noopener">thousands of dollars more in interest</a> over the long run. For example, someone with $100,000 in federal graduate student loans at the current 6.54% interest rate would make monthly payments of $1,138 on the standard 10-year plan and end up paying $36,502 in interest over the lifetime of the loan. But if they refinanced for a lower monthly payment of $660 at a lower interest rate of 5% over a 20-year repayment plan, it would cost them $58,390 in interest over the long term. People can also get enticed into a variable interest rate: Unlike federal loans, which have a locked-in interest rate from start to finish, privately refinanced loans might start out with a low rate, only to skyrocket years down the line because of changing market rates. In 2018, the Federal Trade Commission sued SoFi, alleging its marketing misled people about how much <a href="https://www.cnbc.com/2018/10/31/a-popular-student-debt-lender-is-accused-of-misleading-borrowers.html" target="_blank" rel="noopener">money they would save if they refinanced</a>. In a comment given to CNBC at the time, a spokesperson for SoFi disputed the FTC's characterization: "We have always been committed to giving our current and prospective members clear and complete information with which to make smart financial choices, and are pleased to have this matter resolved."But for many borrowers, the complicated and confusing terms of refinancing offers turn into a boondoggle. Nikki Giraffo is a teacher who felt like she was entering a hall of mirrors anytime she tried to explore her options. Every time she called Navient, her federal-loan servicer, she seemed to get a different answer. On one of those calls to Navient, the representative suggested refinancing her loans privately. Nikki ended up refinancing twice, first with Citizens Bank and then with NaviRefi, but did not end up saving any money. Nikki told me that she felt "lied to and pushed around" by the various loan companies. When I asked her whether she regretted refinancing, she told me "1,000%." Nikki is not alone. In one survey, more than one-third of respondents who refinanced their federal student loans said they <a href="https://money.usnews.com/loans/student-loans/articles/student-loan-refinancing-survey" target="_blank" rel="noopener">eventually came to regret it</a>.<h2>If you refinance your student loans, you risk losing out on government assistance</h2>The Education Department offers various payment plans to ease the debt burden for borrowers. Income-driven plans allow borrowers to pay a percentage of their income toward the loans with no penalty — giving people the ability to pay little or nothing on their student loans when they can't afford to. And the Biden administration has <a href="https://www.ed.gov/news/press-releases/new-proposed-regulations-would-transform-income-driven-repayment-cutting-undergraduate-loan-payments-half-and-preventing-unpaid-interest-accumulation" target="_blank" rel="noopener">proposed changes</a> that will allow millions more people to make $0 monthly payments while not accruing interest. This summer, the Education Department will also conduct a massive <a href="https://studentaid.gov/announcements-events/idr-account-adjustment" target="_blank" rel="noopener">account adjustment</a> that will cancel debt for millions of people and put millions more much closer to cancellation.<div type="image" title="George Washington University student Kai Nilsen and other student loan debt activists rally outside the White House a day after President Biden announced a plan that would cancel $10,000 in student loan debt for those making less than $125,000 a year in Washington, DC, on August 25, 2022." height="1992" width="2657" msid="98306192" hostid="261"></div>The most headline-grabbing piece of student-debt news over the past few years was Biden's <a href="https://www.businessinsider.com/biden-student-loan-forgiveness-one-time-no-more-broad-relief-2022-8">plan to cancel up to $10,000 in federal student loans</a> ($20,000 for those with Pell Grants) for anyone making less than $125,000 a year. While the plan was struck down by the <a href="https://www.businessinsider.com/student-loan-forgiveness-blocked-supreme-court-strikes-down-debt-cancellation-2023-5">Supreme Court</a>, it would have only helped those who had not previously refinanced their loans with a private company.Refinancing companies had told people to leave $10,000 or $20,000 of federal student loans un-refinanced to stay eligible for Biden's cancellation plan. But even if you did that, you are still locking yourself into a long-term private loan that will prevent you from being eligible for any future cancellation. <h2>If you refinance your student loans, you can put your family at risk</h2>To get approved and the lowest rates, most people who refinance their student loans are required to have a cosigner — someone who agrees to pay if you can't. This is most often a spouse, parents, or children. If a borrower loses their job or isn't able to work, the cosigner is still on the hook for the debt. If the cosigner can't make the payments, either, it can destroy their credit and the lender can sue to garnish their wages. It's also not uncommon for the terms of the loan <a href="https://files.consumerfinance.gov/f/201404_cfpb_midyear-report_private-student-loans-2014.pdf" target="_blank" rel="noopener">to require a lump-sum payment</a> if the cosigner dies or files for bankruptcy. Imagine being forced to come up with $400,000 with 30 days' notice after the death of a close family member — when things go bad, they go very bad.Federal student loans, by contrast, do not require a cosigner. If you get laid off or fall on hard times and can't make a payment, none of your loved ones will be saddled with this debt. You can file paperwork that will lower or eliminate your payments. People undergoing <a href="https://studentaid.gov/sites/default/files/CancerTreatmentDeferment.pdf" target="_blank" rel="noopener">cancer treatment</a>, for example, can get their federal loans deferred. And if you die, your loans get discharged.<div type="image" title="Doctor Ali Jamehdor, Chief Director of the Emergency Room of the Dignity Health - St. Mary Medical Center, stands in front of a Covid-19 triage tent for patients with symptoms in Long Beach, California, on December 17, 2020. - Over the last two weeks, the number of new Covid-19 cases in 24 hours has climbed above 200,000 for 11 out of 14 days. Experts now fear the situation will become even more dire following end of year celebrations, including the Christmas holiday. (Photo by Apu GOMES / AFP) (Photo by APU GOMES/AFP via Getty Images)" height="4320" width="5760" msid="98306194" hostid="261"></div>In my years of helping people buried in debt, the most painful conversations have surrounded cosigners. It's bad enough to find your own life in financial ruin, but to be the cause of financial stress to those you love the most is heart-wrenching. Recent changes to the law require <a href="https://www.congress.gov/bill/115th-congress/senate-bill/2155" target="_blank" rel="noopener">private student loans to be discharged if you die</a>, but that isn't the case with older loans. Since refinancing companies love to target doctors loaded up with medical-school debt, this became an additional source of stress during the worst of the COVID-19 crisis. As Andrew Tisser, an emergency-room doctor who refinanced with a private company, <a href="https://news.yahoo.com/medical-workers-tackling-coronavirus-theyre-185600436.html" target="_blank" rel="noopener">put it</a>, "If I were to die from COVID right now, my family would be stuck with $433,000." Most private student loans allow for some kind of "cosigner release" so no one else is on the hook for your loans. But in my experience, it's <a href="https://files.consumerfinance.gov/f/201404_cfpb_midyear-report_private-student-loans-2014.pdf" target="_blank" rel="noopener">hard to get these private lenders to honor their own policies</a>.<h2>Refinancing companies make the system worse for everyone</h2>Private refinancing companies don't just hand out their loans to anyone. The ideal targets for these companies are people who have a solid credit score, high income, and a large student-loan balance — in the hundreds of thousands. They typically target doctors, lawyers, and people with graduate degrees in STEM fields since they represent the lowest risk. While refinancing companies use "colorblind" metrics like income, the school you graduated from, and your major, it just so happens that the kind of people whom refinance companies approve turn out to be mostly well-off <a href="https://www.americanbanker.com/news/upstart-says-its-improving-ai-models-after-report-finds-race-approval-disparities" target="_blank" rel="noopener">white men</a>. A 2020 study by the Student Borrower Protection Center found students who attended historically Black colleges and universities <a href="https://protectborrowers.org/new-report-finds-educational-redlining-penalizes-borrowers-who-attended-community-colleges-and-minority-serving-institutions-perpetuates-systemic-disparities/" target="_blank" rel="noopener">got rejected more often and had higher rates when approved</a>.And by siphoning off the people most likely to pay off their whole loan balance, refinancing companies leave the government with the borrowers who are most likely to end up not being able to pay, which drives up the cost of higher education for everyone.<h2>So who should consider refinancing their student loans?</h2>There is one situation where it might make sense to refinance: if your student loans are already private. This is especially true for people with private loans from before <a href="https://www.congress.gov/bill/115th-congress/senate-bill/2155" target="_blank" rel="noopener">legal protections were added in 2018</a>. If refinancing a loan that is already private can get you a lower interest rate or release your cosigner, then it's absolutely in your best interest to refinance. But since interest rates are rising, you're unlikely to find a better deal anytime soon.For everyone else, the risks of refinancing are almost always too high. Many of the well-paid student debtors targeted by refinancing companies might think that they have more financial security and can afford to take that risk. But as the recent wave of mass layoffs at Silicon Valley giants like Microsoft, Google, and Facebook show, a sudden job loss can happen to anyone. Most Americans are <a href="https://khn.org/news/article/diagnosis-debt-investigation-faces-of-medical-debt/" target="_blank" rel="noopener">one slip on a banana peel</a> away from <a href="https://www.cnbc.com/2019/02/11/this-is-the-real-reason-most-americans-file-for-bankruptcy.html" target="_blank" rel="noopener">bankruptcy</a>. Millions of people are <a href="https://www.brookings.edu/research/new-data-shows-long-covid-is-keeping-as-many-as-4-million-people-out-of-work/" target="_blank" rel="noopener">unable to work because of long COVID</a>. You are much better off having the protections that come with federal student loans if you get laid off or have a sudden medical emergency. Private lenders are quick to swarm borrowers with tantalizing offers of large savings and may seem like a godsend for hardworking people living with the constant pressure of student loans. But if you fall for the pitch, you risk losing out on a whole lot of protections.When I asked Nikki what advice she would give, she told me, "Trust no one. Hang up the phone. They are preying on literal desperation."<a href="https://www.businessinsider.com/author/thomas-gokey">Thomas Gokey</a> is a co-founder of the Debt Collective, a union for debtors where he currently serves as a case worker and policy director.

The Supreme Court shut down Biden's student loan forgiveness &mdash; and refinancing startups are waiting to pounce

New Delhi, Ed-tech titan <keyword id="3320944" type="General" weightage="20" keywordseo="Byjus" source="Orion">Byjus</keyword> is looking to sell its overseas ventures Epic and Great Learning to pay back its entire USD 1.2 billion (Rs 9,956 crore) loan to lenders, a source familiar with the matter said. The ed-tech decacorn has been in discussions with the lenders and has made a proposal to clear its Term B loan, the source said. Byju's hopes to garner between USD 800 million to USD 1 billion from the sale of Epic, the US-based kids learning firm, and Great Learning - the upskilling platform. The firm is also working on raising fresh capital from equity sales, and is working with bankers for the sale of the aforementioned key assets to strategic investors -- which has also garnered interest, the source said. An email sent to the ed-tech platform for comments remained unanswered. India's most-valued startup is hoping to repay the entire USD 1.2 billion term loan B (TLB) in under six months. Of this, it is proposing to repay USD 300 million in the next three months. Lenders have not yet responded to the proposal. Byju's in November 2021 raised USD 1.2 billion in debt through a term loan facility (TLB) from a group of overseas investors. A TLB is a type of senior secured syndicated credit facility that is issued by global institutional investors. Typically, the proceeds from a TLB are used to either refinance an existing debt or to make overseas acquisitions in order to enhance a company's offerings. Byju's had acquired Aakash USD 950 million in 2021. In July this year, the steering committee of ad hoc term loan lenders is reported to have agreed to amend the USD 1.2 billion term loan. The development comes after the company formed an advisory council with ex-Infosys CFO Mohandas Pai and Bharatpe Chairman and former SBI chief Rajnish Kumar after the exit of investors G V Ravishankar of Sequoia Capital (now Peak XV Partners), Vivian Wu of Chan Zuckerberg Initiative and Russell Dreisenstock of Prosus. Byjus had acquired Epic in a USD 500 million cash-and-stock deal in May 2022.

Byjus proposes sale of overseas units to repay $ 1.2 billion loan

<a href="https://businessinsider.com/confessions-of-a-startup-founder-wife-marriage-tiktok-games-2023-11"></a><ul class="summary-list"><li>This post originally appeared in the Insider Today newsletter.</li></ul>Halfway to the weekend! For much of the US, the cold weather is settling in and it's getting darker earlier. Here's some advice from a therapist on <a href="https://www.insider.com/tips-for-seasonal-depression-from-therapist-who-experiences-it-2023-11" target="_blank" rel="noopener">how to get through</a> what can be a difficult time of year for many of us. In today's big story, a Business Insider reporter gives her unique perspective on <a href="https://businessinsider.com/confessions-of-a-startup-founder-wife-marriage-tiktok-games-2023-11" target="_blank" rel="noopener">navigating life as a startup founder's wife</a>.What's on deck: <ul><li>Markets: Inflation <a href="https://www.businessinsider.com/inflation-consumer-price-index-economic-outlook-food-gas-prices-october-2023-11" target="_blank" rel="noopener">cooled in October</a>, leading one market expert to label it a "<a href="https://newsletter.businessinsider.com/click/33372156.1298281/aHR0cHM6Ly9tYXJrZXRzLmJ1c2luZXNzaW5zaWRlci5jb20vbmV3cy9zdG9ja3MvZmVkLXJhdGUtY3V0cy1mb3JlY2FzdC0yMDI0LW9jdG9iZXItaW5mbGF0aW9uLWRyb3AtY3BpLWdhbWVjaGFuZ2VyLTIwMjMtMTE_dXRtX21lZGl1bT1uZXdzbGV0dGVyJnV0bV9zb3VyY2U9U2FpbHRocnUmdXRtX2NhbXBhaWduPUluc2lkZXJfVG9kYXk/63c964d0fd0e8ffc6308a4aeB6a43f2fc" target="_blank" rel="noopener">gamechanger</a>."</li><li>Tech: Amazon is <a href="https://www.businessinsider.com/amazon-suspends-promotions-employees-not-meeting-rto-mandate-2023-11" target="_blank" rel="noopener">blocking promotions for employees</a> who don't comply with its RTO policy.</li><li>Business: A long-time Airbnb host sounds off on the <a href="https://www.businessinsider.com/nyc-airbnb-ban-short-term-rentals-craigslist-scams-2023-11" target="_blank" rel="noopener">impact of NYC's de-facto ban</a>.</li></ul>But first, let's talk this out.<h3>The big story</h3><h2>A founder's other backer</h2><a href="https://businessinsider.com/confessions-of-a-startup-founder-wife-marriage-tiktok-games-2023-11"></a><div type="image" title="A man on the left writes ideas on post-it notes, while a woman on the right types on her computer." height="960" width="1920" msid="105240099" hostid="261" sizebytes="225932"></div>The startup world is not for the faint of heart.Long hours, stressful work, and layoffs are commonplace. And for your efforts, you're more than likely to fail. Still, tech entrepreneurs know what they're signing up for. For most, it's better to fail trying than to just be a cog in the wheel of a corporate giant. But what about their significant others? For many founders, there is a spouse or partner by their side. And while it's not their dream, that doesn't make navigating the heartache and turmoil any easier. Business Insider's Melia Russell knows those challenges all too well. <a href="https://businessinsider.com/confessions-of-a-startup-founder-wife-marriage-tiktok-games-2023-11" target="_blank" rel="noopener">In this fascinating essay</a>, she details her life as a founder's wife, watching from the sidelines as her husband's company tries to stay afloat during an <a href="https://www.businessinsider.com/silicon-valley-fears-exctinction-event-startup-failure-rate-increase-2023-6" target="_blank" rel="noopener">unprecedented time for startups</a>.Melia's account of her relationship with Kyle and his startup is equal parts entertaining, heartwrenching, and informative. It also provides another perspective on the <a href="https://www.businessinsider.com/news-today-october-25-startup-workers-layoffs-morale-tech-2023-9" target="_blank" rel="noopener">high-stress world of launching a company</a>.<a href="https://businessinsider.com/confessions-of-a-startup-founder-wife-marriage-tiktok-games-2023-11"></a><div type="image" title="Kyle works out with dumbells." height="450" width="900" msid="105240100" hostid="261" sizebytes="58220"></div>As if being a founder spouse wasn't difficult enough, Melia has the bonus of <a href="https://www.businessinsider.com/author/melia-russell" target="_blank" rel="noopener">covering the space as a reporter</a>.Imagine spending a good chunk of your workday researching and writing about all the things that can go wrong in an industry the person you love is endlessly pursuing. It's like an emergency-room doctor marrying a stunt performer.(To be sure, everything Melia writes isn't <a href="https://www.businessinsider.com/ypo-young-presidents-organization-secret-club-for-ceos-2021-4" target="_blank" rel="noopener">doom</a> and <a href="https://www.businessinsider.com/women-venture-capital-change-maternity-leave-policy-culture-2022-10" target="_blank" rel="noopener">gloom</a>.)When I asked Melia about the piece, she said it was the hardest thing she's ever written. But she found the process cathartic. Working on the story forced her to have difficult but important conversations with Kyle, and address issues head-on she's long fostered but rarely communicated.That, in a nutshell, is one of the biggest takeaways Melia said she hopes other founders' partners will get from the piece: communication is critical. And while that's true of any relationship, it's especially pertinent in the volatile startup ecosystem.Bottling up those emotions to be a spouse's "relentlessly positive cheerleader" can weigh on a person, Melia told me. She also recommends finding people in similar situations. Being a founders' partner is the type of thing that can only be understood by being a founders' partner.Never one to miss an opportunity, Melia told me she's happy to chat. You can <a href="mailto:mrussell@businessinsider.com" target="_blank" rel="noopener">ping her here</a>.<h2>3 things in markets</h2><a href="https://www.businessinsider.com/inflation-consumer-price-index-economic-outlook-food-gas-prices-october-2023-11"></a><div type="image" title="a customer shops for halloween candy" height="667" width="889" msid="105240101" hostid="261" sizebytes="73024"></div><ol><li> Inflation cools off. The Consumer Price Index <a href="https://www.businessinsider.com/inflation-consumer-price-index-economic-outlook-food-gas-prices-october-2023-11" target="_blank" rel="noopener">increased 3.2% on an annual basis</a>, which was lower than expected and a smaller bump than September's 3.7% increase. PIMCO's former chief economist called it a "gamechanger," and said the <a href="https://markets.businessinsider.com/news/stocks/fed-rate-cuts-forecast-2024-october-inflation-drop-cpi-gamechanger-2023-11" target="_blank" rel="noopener">Fed's next move will be to cut rates</a>. Bank of America also seems optimistic <a href="https://www.businessinsider.com/cpi-inflation-october-outlook-economy-markets-fed-rate-hike-bofa-2023-11?miRedirects=1" target="_blank" rel="noopener">the rate-hiking cycle is over</a>, while Fundstrat's Tom Lee said inflation <a href="https://markets.businessinsider.com/news/stocks/stock-market-face-ripper-rally-inflation-hits-wall-cpi-fundstrat-2023-11" target="_blank" rel="noopener">might be finally hitting a wall</a>.</li><li> What to expect when you're expecting… a bonus. We're a few months away from bonus season, where finance employees find out how big — or little — the discretionary part of their compensation is. One expert predicts another tough year, with exceptions in areas like equity underwriting and wealth management. <a href="https://www.businessinsider.com/bonuses-at-banks-hedge-funds-private-equity-alan-johnson-report-2023-11" target="_blank" rel="noopener">Here's a breakdown by division of what to expect.</a></li><li>While Wall Street's titans worry about a world war, the market shrugs. Big names like Ray Dalio and Jamie Dimon have warned about the state of the world following Hamas' attack on Israel. <a href="https://markets.businessinsider.com/news/stocks/ray-dalio-jamie-dimon-billionaire-investors-world-war-iii-outlook-2023-11" target="_blank" rel="noopener">But the market seems unbothered</a>, with the S&amp;P 500 and Nasdaq Composite both up since the October 7 attacks.</li></ol><h2>3 things in tech</h2><a href="https://www.businessinsider.com/amazon-suspends-promotions-employees-not-meeting-rto-mandate-2023-11"></a><div type="image" title="amazon logo in a building lobby" height="667" width="889" msid="105240102" hostid="261" sizebytes="19966"></div><ol><li> Leaked doc: Amazon is blocking the promotion of employees who don't comply with the company's return-to-office policy. Those who aren't going into the office at least three times a week will <a href="https://www.businessinsider.com/amazon-suspends-promotions-employees-not-meeting-rto-mandate-2023-11" target="_blank" rel="noopener">need a VP's approval</a> to get the proposed promotion, internal messages show. It's the latest update to Amazon's unusually contentious return-to-office process.</li><li>Google's lawyer reportedly "visibly cringed" when a confidential metric was revealed in court. Apple and Google have both been fighting against revealing <a href="https://www.businessinsider.com/google-lawyer-cringed-court-confidential-apple-payment-ad-revenue-report-2023-11" target="_blank" rel="noopener">details of their search-engine agreement</a>. But an expert witness accidentally leaked that Google hands over 36% of its Safari search ad revenue to Apple.</li><li>AI is going to force millions of workers to train for new jobs. The US has historically been terrible at this — just look at the loss of millions of US manufacturing jobs in the early 2000s. To <a href="https://www.businessinsider.com/jobs-ai-chatgpt-career-change-reskilling-tech-training-workers-disruptions-2023-11" target="_blank" rel="noopener">avoid the same catastrophe</a>, US companies need to make major retraining investments.</li></ol><h2>3 things in business</h2><a href="https://www.businessinsider.com/nyc-airbnb-ban-short-term-rentals-craigslist-scams-2023-11"></a><div type="image" title="red-brick buildings on a nyc street" height="666" width="888" msid="105240104" hostid="261" sizebytes="112126"></div><ol><li>"Why NYC's Airbnb ban is a slap in the face to people like me." A New York City resident who rented their spare bedroom for years didn't qualify for a license under the city's new short-term-rental rules. Their <a href="https://www.businessinsider.com/nyc-airbnb-ban-short-term-rentals-craigslist-scams-2023-11" target="_blank" rel="noopener">finances now feel less secure</a>, and finding guests has become more difficult. </li><li>A Q&amp;A with the chief product officer at Discovery Education. Pete Weir dishes on <a href="https://www.businessinsider.com/how-ai-helps-employees-according-to-a-chief-product-officer-2023-11">how they're testing and using AI</a>. Weir said that the tech isn't meant to replace teachers — it's meant to augment them.</li><li>Meet the typical HENRY. The <a href="https://www.businessinsider.com/henry-student-loans-six-figure-income-millennial-gen-z-retirement-2023-11" target="_blank" rel="noopener">typical profile of a high earner, not rich yet</a> is a 32-year-old with a college degree, six-figure income, and no kids. They also live in a city but have $80,000 in student-loan debt to pay off.</li></ol><h2>In other news</h2><ul><li><a href="https://www.businessinsider.com/will-there-be-government-shutdown-house-passes-laddered-bill-funding-2023-11" target="_blank" rel="noopener">The House managed to pass a bill avoiding a government shutdown just days before funding runs out</a></li><li><a href="https://www.insider.com/le-bal-des-debutantes-paris-participant-preparation-impact-2023-11" target="_blank" rel="noopener">Inside the most exclusive debutante ball in the world, where the children of the rich and famous come out to high society</a>.</li><li><a href="https://www.businessinsider.com/supreme-court-ethics-rules-missing-word-should-shall-2023-11" target="_blank" rel="noopener">There's one word missing from the Supreme Court's new code of conduct that makes the whole thing toothless</a>.</li><li><a href="https://www.businessinsider.com/goldman-sachs-boost-trading-business-social-networks-data-analytics-2023-11">Here's how Goldman Sachs is aiming to win more trades from its biggest institutional clients</a>.</li><li><a href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-dow-sees-death-cross-in-bearish-signal-2023-11" target="_blank" rel="noopener">The Dow Jones has seen a dreaded "death cross." Here's what it means</a>.</li><li><a href="https://www.businessinsider.com/overemployed-workers-multiple-jobs-guide-lingo-tips-2023-11" target="_blank" rel="noopener">How to talk to your secretly "overemployed" friends</a>.</li><li><a href="https://www.businessinsider.com/new-slack-ui-update-design-custom-themes-colors-ranked-2023-11" target="_blank" rel="noopener">A definitive ranking of the new theme colors on the godawful Slack update</a>.</li><li><a href="https://www.businessinsider.com/whoopi-goldberg-criticized-for-gen-z-millennial-work-ethic-comments-2023-11" target="_blank" rel="noopener">Whoopi Goldberg is criticized online for saying Gen Z and millennials can't afford a house because they 'only want to work four hours' a day</a></li><li><a href="https://www.businessinsider.com/jeff-bezos-yacht" target="_blank" rel="noopener">Jeff Bezos' yacht reportedly cost $500 million and is the largest sailing yacht in the world. Here's what we know about it.</a></li><li><a href="https://markets.businessinsider.com/news/bonds/investors-bullish-bond-market-crash-economy-inflation-yields-fed-rates-2023-11" target="_blank" rel="noopener">CHART OF THE DAY: Investors haven't been this bullish on bonds since the depths of the Great Financial Crisis</a>.</li></ul><h2>What's happening today</h2><ul><li>The 16th annual Steve Irwin Day at the Australia Zoo is today. It celebrates the Crocodile Hunter's life — he died in 2006 from a stingray attack.</li><li>Microsoft Ignite, an annual developer and IT professional conference, kicks off today. CEO Satya Nadella is expected to give a keynote related to AI.</li><li>Earnings today: Target, Cisco, <a href="https://markets.businessinsider.com/earnings-calendar" target="_blank" rel="noopener">and other companies</a>.</li></ul><h3>For your bookmarks</h3><h2>Centenarian longevity tips</h2><a href="https://www.insider.com/longevity-tips-centenarian-who-played-golf-younger-friends-2023-11"></a><div type="image" title="Janet Gibbs, 102, pictured at a Centenarian Club tea party" height="750" width="1000" msid="105240105" hostid="261" sizebytes="27212"></div>A 102-year-old woman revealed her tips for living to 100. Her <a href="https://www.insider.com/longevity-tips-centenarian-who-played-golf-younger-friends-2023-11" target="_blank" rel="noopener">top longevity tips</a> include walking a lot and having younger friends.The Insider Today team: <a href="https://www.businessinsider.com/author/dan-defrancesco">Dan DeFrancesco</a>, senior editor and anchor, in New York City. <a href="https://www.businessinsider.com/author/diamond-naga-siu">Diamond Naga Siu</a>, senior reporter, in San Diego. <a href="https://www.businessinsider.com/author/hallam-bullock">Hallam Bullock</a>, editor, in London. <a href="https://www.businessinsider.com/author/lisa-ryan">Lisa Ryan</a>, executive editor, in New York.

The hidden woes of being in a relationship with a startup founder

<ul class="summary-list"><li>Brex CEO Henrique Dubugras is fundraising more than $1 billion in loans for startups affected by the SVB collapse. </li><li>Dubugras aims to give out loans as soon as next week so companies can make payroll.</li></ul>Henrique Dubugras, CEO of the fintech company Brex, is working to pull together more than $1 billion in funds to provide bridge loans for startups affected by the <a href="https://www.businessinsider.com/silicon-valley-bank-auction-collapse-deposit-protection-2023-3">Silicon Valley Bank collapse</a>. "As of yesterday, we've received $1.5 billion in requests from nearly 1,000 companies," a spokesperson for Brex told Insider. "We are trying to raise as much capital as we can."The spokesperson told Insider the funds are intended to help startups make payroll next week and stay afloat while their money is tied up. Dubugras joins several other tech leaders who led fundraising efforts this weekend — including OpenAI CEO Sam Altman who <a href="https://www.businessinsider.com/sam-altman-sent-money-support-startup-payroll-svb-collapse-report-2023-3">reportedly gave six-figures to the CEO of Rad AI</a> — after Silicon Valley Bank was <a href="https://www.businessinsider.com/svb-failure-what-the-hell-happened-2023-3">shut down by regulators</a> on Friday. "We are working quickly with third-party capital providers and Brex Asset Management to have emergency funds available to startups early next week," the spokesperson said. Brex has not disclosed the terms of the loans, or how much money it has raised so far, <a href="https://techcrunch.com/2023/03/11/brex-ceo-is-trying-to-raise-over-1-billion-in-a-weekend-for-svb-related-bridge-loans/">TechCrunch reported</a>. But Dubugras told the outlet he hopes any customers who take on loans will remain with Brex after the dust settles. "The reason we're doing it is obviously we want to support a community, that's very important," Dubugras told TechCrunch. "The business reason we're doing this is because we'll fund these loans and our business accounts, and we hope people stay our customers right after that."One major question facing the plan is fraud, and vetting the companies which have applied for bridge loans. In a statement to Insider, the Brex spokesperson said the company has a strong assessment process, while Dubugras told TechCrunch most of the requests appear to be from "real startups that had real businesses with real deposits.""[T]here are verification processes in place to ensure there is no fraud," a spokesperson told Insider. "Talk about a day I'll remember for the rest of my life," Dubugras tweeted Saturday.

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The hidden woes of being in a relationship with a startup founder

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A fintech CEO is trying to raise more than $1 billion to fund bridge loans for startups impacted by the Silicon Valley Bank collapse

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