I suspect that the returns are too low to cover the failures or rates would be too high for the successful ones to afford. The real problem is that banks borro

I suspect that the returns are too low to cover the failures or rates would be too high for the successful ones to afford. The real problem is that banks borrow short and lend long. They cant take the risk. Maybe VCs could package SBA loans. Others have suggested small investments from non-sophisticated investors. Maybe they could set up a mutual fund that invested in letter stock. Letter stock is stock that is not registered with the SEC and cannot be publicly traded.