Whether Amazon.com's commercial lending pilot program is successful or not will be determined over time and how its underwriting terms stack up against banks, credit unions and others who have been doing business lending for years.

Dennis Dollar, principal partner with consulting firm Dollar Associates LLC in Birmingham, Ala., offered that reaction to Amazon's latest venture of offering business loans to its online merchants.

“I think credit unions can hold their own against all comers when it comes to solid business underwriting and a heartbeat for serving small business in their communities,” said Dollar, a former NCUA chairman.

Still, Dollar said, “Amazon's entry into the market is simply another sign that small business credit is incredibly tough to come by in today's market, even though small business is the leading job incubator in a nation that desperately needs entrepreneurship and the employment growth coming from it.”

All the more reason why Congress needs to remove what Dollar calls artificial barriers to small business credit such as the 12.25% member business lending cap.

“Nothing against Amazon, but it is a sign that there is a burgeoning demand for entrepreneurial lending for American small businesses and small businesses to be,” Dollar said.

“Amazon becomes just one more player in the business credit arena, joining others – both traditional and non-traditional – that are trying to meet the growing need for start-up business credit in this country,” he said.

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