July 15, 2011
The Wall Street Journal reports that Sam’s Club, the warehouse bulk-buying store owned by Wal-Mart, is now offering loans to their small business customers. According to the article, Sam’s Club will offer 10-year term loans of $5000 to $25,000 with annualized interest rates of 7.5%.
The reasoning behind this is not completely altruistic. Sam’s Club realizes that many of their customers are small businesses and as it’s getting harder and harder for small businesses to secure loans, Sam’s Club figured they could step in to fill the gap which would help those small businesses stay in business and thus keep shopping at Sam’s Club.
It should be noted that Sam’s Club does not actually loan the money out of their own coffers. They are currently testing an online application model in partnership with Superior Financial Group which is a Small Business Administration lender to make access to that capital hopefully easier for Sam’s Club customers and future customers. If you want to learn more about this innovative lending program click here.