INDIA: UGRO Capital Limited (NSE: UGROCAP | BSE: 511742), a leading DataTech NBFC focused on MSME lending, today announced a significant development that underscores its commitment to growth, innovation, and delivering value to stakeholders. UGRO Capital’s Board of Directors has approved the acquisition of ‘MyShubhLife’ (MSL), a prominent Embedded Finance Fintech platform headquartered in Bangalore, for an enterprise value of INR 45 Cr through a combination of 64:36 Equity Cash transaction, thereby making it a wholly owned subsidiary.

MSL stands as a market leader in embedded finance solutions, specializing in offerings tailored for small shopkeepers and distributors. Distinguished by its unique products featuring daily and weekly installment options along with an overdraft facility, MSL demonstrates robust underwriting and distribution capabilities, positioning it uniquely to deliver customized credit solutions to last-mile retailers and distributors.

The platform has already sourced over 15 million merchants through anchor partners involving consumer tech. It has already partnered with Pine Labs, Fino, Airtel Payments Bank, Mobikwik, Spice Money, and EasyPay among others for merchant financing. The company was valued at INR 240 Crores when Gozo invested in the Series B round. Its major investors include Gojo, Saama Capital IV Ltd., and BEENEXT2 Pte. Ltd., among others.

With MSL seamlessly integrated into its ecosystem, U GRO Capital envisions onboarding 200,000 new retailers within the next three years, thereby unlocking substantial growth opportunities. The company anticipates experiencing incremental Assets Under Management (AUM) of INR 1500 Cr and achieving a Profit After Tax (PAT) of INR 100 Cr over the same period with MSL as its subsidiary.

Reflecting on this acquisition, Shachindra Nath, Founder and Managing Director of U GRO Capital, said, “The acquisition of MyShubhLife marks a significant milestone in our journey. Scaling up Embedded Finance requires a deep understanding & penetration of the payment player’s ecosystem and a cutting-edge data & technology stack. MSL has a proven track record on both counts, and it fits well with UGRO’s strategy. MSL’s live embedded relationships with leading payment ecosystems and a very contemporary and functional technology architecture will add granularity & yields to our portfolio. This acquisition reinforces our commitment to direct digital lending for small retailers.”

Monish Anand, Founder & CEO, of MyShubhLife, said, “The realm of lending is primarily a matter of scale, and in UGRO we have found a lender that not only has access to an extensive balance sheet but also has DataTech as its core DNA. Our primary objective is to employ technology as a catalyst for offering contextual and innovative credit products to small-scale shopkeepers and distributors across the nation. We at MSL are delighted to embark on this new journey together with UGRO, and we aim to work towards achieving our mutual goal.”

With this strategic acquisition, UGRO Capital remains steadfast in its commitment to driving inclusive economic growth and empowering MSMEs across India.

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UNITED STATES: The Federal Trade Commission is launching a claims process for small businesses harmed by payment processing company First American Payment Systems’ undisclosed early termination fees.

The agency is mailing notices to 1,137 businesses that were customers of First American between June 2017 and April 2020 and later canceled their services. Businesses that paid an early termination fee are eligible to request a payment. The deadline to file a claim is May 28, 2024. Eligible businesses can file a claim online at www.ftc.gov/FirstAmerican. Those who have questions or need help filing a claim can call 877-595-0114 or email info@FirstAmericanPaymentSettlement.com. The Commission never requires people to pay money or provide account information to apply for a refund.

The FTC first took action against First American in 2022, alleging that the company failed to disclose early termination fees and made false claims about fees and cost savings to lure merchants, many of whom had limited English proficiency, into using its services. Once merchants were enrolled, the defendants withdrew funds from their accounts without their consent and made it difficult and expensive for them to cancel the service. 

Under the terms of the settlement, First American and two of its sales affiliates were required to return $4.9 million, stop their deception, stop charging existing customers early termination fees, and make it easier for merchants to cancel their services.

The Commission’s interactive dashboards for refund data provide a state-by-state breakdown of refunds in FTC cases. In 2023, FTC actions led to $324 million in refunds to consumers across the country.

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WASHINGTON:  Business leaders across the country are joining the U.S. Small Business Administration (SBA) in voicing support for the agency’s slate of major improvements to the agency’s popular 7(j) Management and Technical Assistance program. These changes – launched under a new name, Empower to Grow (E2G) – include significant upgrades to the program’s core services and are designed to deliver on the SBA’s commitment under the Biden-Harris Administration to advance equity in federal procurement.

In Fiscal Year 2023, small businesses participating in the 7(j) program, submitted 3,700 bids for federal contracts, and 2,200 of those bids were awarded contracts — a win rate of 60%. More than 6,000 small businesses participated in the program and, on average, firms that received training self-reported that their percentage growth in annual revenue had increased by 45%. This adds to the SBA’s release of FY21 and FY22 federal contracting data disaggregated by race and ethnicity, which shows that small businesses in every demographic category analyzed are seeing an increase in federal contracting dollars under the Biden-Harris Administration.   

“Small business growth unlocks paths to prosperity and generational wealth building in America, which is why the Biden-Harris Administration continues to prioritize equity and leveling the playing field so small business owners from historically underrepresented groups can successfully compete for over $700 billion in small business-eligible federal contracts,” said Administrator Guzman. “We’ve revitalized the 7(j) training program to launch an improved ‘Empower to Grow’ acceleration program with tools to help ready more businesses and build a diversified supplier base, which will also increase competition, innovation, and performance in the federal marketplace. We know there is more work to be done to reverse the disparities in federal procurement for America’s minority-owned businesses, and the SBA’s Empower to Grow training program will be a critical resource supporting that work.”

Upgrades to the Empower to Grow program will include:

• Enhancement of customized 1:1 training tailored to develop the critical skillset needed to win government contracts.
• Launch of the enhanced Federal Market Acceleration Program (FedMAP), a three-month training program in government contracting led by government business development experts.
• Launch of a federal contractor master class providing new tools and techniques to accelerate small businesses competing for contracts including Sources Sought and Request for Information requirements.
• Integration of networking and matchmaking events with government agencies and prime contractors.
• Bidding technology for 8(a) firms to receive, review, and respond to over $2 trillion of State and Local bid opportunities.
• Multilingual counselors fluent in Spanish and other languages to ensure outreach and accessibility in all states and territories.

Leaders in the business community joined Administrator Guzman in celebrating the launch of Empower to Grow:

“The U.S. Black Chambers, Inc. expresses its enthusiastic support for the latest announcement by the Biden-Harris Administration on the ongoing headway to enhance small business access to federal contracts for historically marginalized entrepreneurs. The progress unveiled by the Administration aligns with our commitment to creating opportunities for Black entrepreneurs and promoting diversity within the business landscape. As champions for economic inclusion, we applaud President Biden’s historic actions to deploy nearly $70 billion in federal contracts to SDBs over the last year, nearly $500 million of which went to Black-owned firms. In keeping with this progress, we commend the continued emphasis on increasing transparency, streamlining processes, and ensuring fair competition in federal contracting,” said Ron Busby Sr., President and CEO of U.S. Black Chambers, Inc. “To maintain such progress, we encourage continued collaboration between the private sector and government agencies to implement and refine these initiatives effectively. As we highlighted three years ago during the beginning of this Administration, the USBC remains dedicated to working with the White House, policymakers, corporations, and community leaders to advance economic opportunities for Black entrepreneurs.”

“The Small Business Administration’s ‘Empower to Grow’ program represents a significant advancement in supporting small and minority-owned businesses and creating a diverse federal contracting environment, a commitment reflected in the historically higher increases in federal contracting dollars seen under the Biden-Harris Administration,” said Ramiro A. Cavazos, President & CEO, United States Hispanic Chamber of Commerce. “At the USHCC, we applaud these efforts and recognize the transformative impact of tailored training and resources for small business owners, underscoring our ongoing commitment to work with the SBA to invest in and elevate our small business community. We also acknowledge that there remains much work to be done to ensure equitable opportunities for all.”

Small businesses are the heart and soul of our nation. They create increased opportunities for families and their communities and inspire entrepreneurs to join the great American legacy of innovation and growth. Where obstacles for disadvantaged communities have existed, the Biden-Harris Administration has worked hard to remove them and expand new pathways for equity. SBA Administrator Isabel Casillas Guzman’s announcement of the Management and Technical Assistance program under the new title, Empower to Grow, builds on this,” said Ying McGuire, CEO & President, of the National Minority Supplier Development Council. “We applaud the new tools and training this program provides to small business owners from disadvantaged communities that will allow them to access better contracting opportunities, become more competitive, and increase their families and communities’ ability to flourish. NMSDC looks forward to its continued partnership with Administrator Guzman and the rest of the Biden-Harris Administration as we pursue more growth for the entire small business community.”

“The SBA’s ‘Empower to Grow’ is an important program for America’s small businesses. The updates recently announced to the program are a good step forward, primarily the steps taken around disaggregated data,” said Rhett Buttle, President, of Public Private Strategies Institute. “By providing enhanced coaching, training, and technology tools, ‘Empower to Grow’ enables these businesses to become contract-ready, fostering competition, innovation, and robust performance in federal spending.“

“New data reveals a historic surge in federal contracting dollars awarded to small businesses, boosting America’s competitiveness and contributing to the economy. This trend reflects the work of the Small Business Administration and the Biden-Harris Administration’s policies, which have led to sustained economic growth across the country,” said Tammy Halevy, Executive Director, of Reimagine Main Street. “Yet despite strong improvements in contracting, disparities persist. The ‘Empower to Grow’ initiative, which will result in even more contract-ready small and disadvantaged diverse-owned businesses, will further enhance American innovation, supply chain resilience, and competitiveness of the U.S. economy.” 

“In recent years, Biden-Harris Administration policies have generated unprecedented success in federal contracting dollars reaching small businesses, but so many historic disparities persist,” said Shaundell Newsome, Founder of Sumnu Marketing, Small Business for America’s Future Co-Chair. “The SBA’s ‘Empower to Grow’ initiative reinforces a commitment to continuous economic improvement by taking a proactive stance in closing gaps and ensuring business owners have all the tools they need at their disposal. Small and disadvantaged businesses can thrive when we ensure a level playing field.”

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NEW YORK: On Jan. 27, Administrator Isabel Casillas Guzman, head of the U.S. Small Business Administration (SBA) and the voice in President Biden’s Cabinet for America’s more than 33 million small businesses traveled to Las Vegas with Vice President Kamala Harris and Second Gentleman Douglas Emhoff to highlight the Biden-Harris Administration’s commitment to inclusive economic empowerment and opportunity for entrepreneurs and small business owners.

Upon arriving in Las Vegas, Administrator Guzman and Vice President Harris joined U.S. Rep. Steven Horsford (NV-04) and Eric Morrissette, Interim Under Secretary of Commerce for Minority Business Development Agency (MBDA), for a visit to The Chef Jeff Project. Founded by Chef Jeff Henderson, The Chef Jeff Project is a non-profit organization that teaches at-risk young people and those with prior involvement in the criminal justice system culinary and soft skills to help them secure employment.

At The Chef Jeff Project, the leaders discussed a forthcoming SBA rule that will remove restrictions on loan programs that currently prevent returning citizens, including those who are currently on parole and probation, from being eligible for loans. As part of that rule change, the SBA will also remove questions about criminal history from its loan applications. Under the Biden-Harris Administration, more Americans than ever are filing applications to start a new business, and this rule change will build on that historic momentum by providing a second chance to those seeking the American Dream of entrepreneurship.

Administrator Guzman then joined Second Gentleman Emhoff for visits to local Native Hawaiian and Pacific Islander-owned small businesses, including World Wide Safety, Status Sparkling Wine, and Straight Up Café, to learn about the state of the AAPI-owned small business landscape under this Administration. The leaders heard from the small business owners about their entrepreneurial journeys and highlighted the Biden-Harris Administration’s Small Business Boom, which has seen 16 million new business applications filed since President Biden took office – including 185,000 in Nevada alone.

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SBA Administrator Isabel Guzman, the voice in President Biden’s Cabinet for America’s 33 million small businesses, announced the successful permanent establishment of the Community Advantage Program at the Opportunity Finance Network (OFN) annual conference. The CA SBLC license builds on the success of more than a decade of the Community Advantage Pilot Program.

“Access to capital remains the greatest barrier for entrepreneurs looking to add jobs or start and grow their businesses – especially women, people of color, veterans, and rural and LMI communities,” said SBA Administrator Isabel Guzman. “Under the Biden-Harris Administration, the SBA has prioritized closing longstanding capital gaps by expanding the number of lenders focused on underserved markets so these highly entrepreneurial communities can power our economy. As a result of our transformative regulatory reforms, the SBA has now made permanent and expanded its number of mission-driven lenders in Community Advantage SBLC to over 140 strong. These lenders will help fund and power our nation’s small business boom and ensure small businesses can benefit from the President’s Invest in America economic agenda.”

“The new Community Advantage Small Business Lending Company (CA-SBLC) licenses in the 7(a) Loan Program ensures that mission lenders, like CDFIs, can continue to partner with the SBA in supporting small businesses across the country. After more than a decade as a pilot program, the CA-SBLC license provides certainty to underinvested small businesses and the specialized lenders that serve them,” said Harold Pettigrew, President and CEO at Opportunity Finance Network. “We applaud the leadership of Administrator Guzman and the SBA for revitalizing this underutilized SBA program and ensuring the tools and resources are available to close the capital gaps that persist for far too many entrepreneurs.”

The strengthened network of CA SBLCs includes all 112 of the Community Advantage Pilot Lenders who wanted to continue SBA lending, collectively representing 99.8% of the original CA Pilot Program’s lending portfolio, along with 31 new mission lenders approved in the last sixty days.

The Community Advantage Loan Pilot Program was originally launched during the Obama-Biden Administration and set to expire in 2022 before the Biden-Harris Administration extended it. The Pilot Program will sunset on October 31, 2023, to make way for the permanent role of the CA SBLCs within the SBA lending ecosystem.

Community Advantage lenders serve businesses that historically have been excluded from access to capital due to limited financial resources and many other systemic barriers. Under the Pilot Program, Community Advantage lenders have contributed to small-dollar lending outcomes that increased lending to Black and Brown borrowers.

The SBA’s transformative regulatory reforms have made it possible to expand the number of mission-driven lenders in Community Advantage SBLC to over 140 strong. These lenders will help fund and power our nation’s small business boom and ensure small businesses can benefit from the President’s Invest in America economic agenda.

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WASHINGTON: Today, the U.S. Small Business Administration (SBA) announced it will launch a road tour to Midwest states connecting entrepreneurs working on advanced technology to the country’s largest source of early-stage funding – America’s Seed Fund. America’s Seed Fund, comprised of the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, supports next-generation research & development (R&D), providing over $4 billion each year in non-dilutive funding from 11 participating federal agencies. America’s Seed Fund Road Tour plays an essential role in increasing engagement with innovation ecosystems across the country and building out inclusive networks to support the creation of small businesses focusing on high-impact research. 

“The Biden Administration’s Investing in America agenda is about investing in innovators across the nation, including the American heartland,” said SBA Administrator Guzman. “America’s Seed Fund Road Tour ensures that America’s Seed Fund is accessible to businesses in all parts of the country, promoting the development and commercialization of cutting-edge technologies that drive our innovation economy and global competitiveness.” Each Road Tour stop is hosted by SBA’s Federal And State Technology (FAST) Partners, who serve as navigators connecting entrepreneurs to America’s Seed Fund opportunities in their regions. At each stop, entrepreneurs and small business owners can meet one-on-one with federal agency representatives and attend programming to support their America’s Seed Fund journey.

America’s Seed Fund Road Tour: Midwest, July 17-21

Monday, July 17 | Oklahoma City, OK Venue: OKC Convention Center
Hosted by OK Catalyst, University of Oklahoma
Tuesday, July 18 | Wichita, KS Venue: Wichita State University, Woolsey Hall
Hosted by Wichita State University
Wednesday, July 19 | Kansas City, MO Venue: Bloch School at the University of Missouri – Kansas City
Hosted by Missouri Small Business Development Center, University of Missouri
Thursday, July 20 | Lincoln, NE Venue: Howard L. Hawks Hall
Hosted by Nebraska Business Development Center, University of Nebraska at Omaha
Friday, July 21 | Des Moines, IA Venue: FFA Enrichment Center, Des Moines Area Community
Hosted by the Iowa Small Business Development Center, Iowa State University of Science and Technology

For detailed information on the America’s Seed Fund Road Tour route and registration to attend in person, visit www.americasseedfund.us/road-tour.

For more information about America’s Seed Fund (SBIR/STTR) programs, please visit www.sbir.gov.

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