Reviewed by: Lacey Muenstermann
How tech is helping Huntsville’s small business funding + more local business news
Reading time: 5 minutes
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Small businesses account for 40 percent of our country’s GDP, making them an essential element to the U.S. economy. However, in order to thrive and survive, they need capital. This is where running a small business becomes tricky.
In this month’s business feature, we discuss Huntsville small business lending trends with a local expert and catch you up on more business news (like unemployment rates) here in the Huntsville area.
Small businesses face obstacles obtaining funds
We spoke with UNA Sanders College of Business and Technology professor Dr. Mark Foster, Department Chair for Finance, Economics and Data Analytics for his take on the current small business lending trends.
He said that not only do small businesses face unique obstacles in obtaining funding, but they take multiple concerns into account in the new economic environment.
Concerns include:
- The inflation over the past four years and the possible rising cost due to tariffs have pushed up inventory costs.
- Traditional lending sources have tightened credit policy.
- Rising interest rates have forced small businesses to seek out alternate forms of financing.
“Access to capital has long been a leading concern of small businesses. As small businesses continue to experience substantive growth and deal with the potential effects of tariff increases, the demand for capital continues to increase.”
Dr. Mark Foster, Department Chair for Finance, Economics and Data Analytics, UNA Sanders College of Business and Technology
Small businesses look to other lending options
Foster said applications to traditional lending have steadily declined since 2020, suggesting that small businesses are seeking out alternative sources of funding.
Foster added that some of the reasons for electing to move away from traditional funding include lack of confidence in being approved, slowness of the approval process and delays in dispersal of funds.
Fortunately for these business owners, technology has been able to bring alternative sources of funding to the average small business.
“With small businesses operating in a more and more dynamic marketplace, speed of capital acquisition has become increasingly important. This speed has been found in online AI-assisted sources such as fintech, crowdfunding and peer-to-peer lending. These alternatives offer faster, more efficient funding.”
Dr. Mark Foster, Department Chair for Finance, Economics and Data Analytics, UNA Sanders College of Business and Technology
Foster provided examples of technology’s role in helping small business lending:
- The ability to process loan applications online with AI-assisted processes lowers operational costs and allows lenders to offer funds at reduced rates.
- Fintech has allowed lenders to streamline the process of approval and dispersal of funds.
- Crowdsourcing offers the opportunity to acquire funds from a diverse group of investors, which increases the pool of potential investors.
“The market for lending by non-bank, online source and fintech have provided stream-lined sources which have helped to reduce approval times and offered opportunities for those denied by conventional lenders.”
Dr. Mark Foster, Department Chair for Finance, Economics and Data Analytics, UNA Sanders College of Business and Technology
Bank47 opens Huntsville headquarters
Bank47 officially opened its new headquarters in Huntsville on May 29, beginning a new chapter in the bank’s 14-year history.
Formerly LifeSteps Bank and Trust, Bank47 announced earlier this year it would move its headquarters to Huntsville from its original location in Union Springs.
The move comes after LifeSteps Bank and Trust was acquired by LS Investor Group, LLC, and re-branded as Bank47
“This ribbon-cutting marks a new chapter—not just for Bank47, but for the people and communities we serve across North Alabama. Our name, drawn from the numbers 4 and 7, reflects direction, stability, and completeness—all values we aim to bring to every financial relationship. We’re here to be a steady, guiding presence for individuals, families, and businesses ready to move forward with confidence.”
Hill Womble, CEO of Bank47
Bank47 is located at 415 Church St NW, Huntsville, AL 35801 and is open Monday-Friday, 9AM-5PM.
Unemployment in Madison County remains below statewide rate
Alabama’s unemployment rate for May stood at 3.3 percent, unchanged from the rate in April. However, unemployment has increased from May of 2024, when the state reported a 2.9 percent rate.
While unemployment in Madison County is up slightly from this time last year, the rate has remained well below the state average.
Here’s a look at unemployment rates in Madison and surrounding counties:
| County | May 2025 Rate | April 2025 Rate | May 2024 Rate |
| Madison County | 2.3% | 2.3% | 2.0% |
| Limestone County | 2.3% | 2.3% | 2.0% |
| Morgan County | 2.3% | 2.2% | 2.0% |
| Marshall County | 2.4% | 2.4% | 2.1% |
| Lauderdale County | 2.9% | 2.9% | 2.5% |
| Jackson County | 3.2% | 3.1% | 2.6% |
Look for our monthly North Alabama business news roundup this time next month, brought to you by the University of North Alabama Sanders College of Business & Technology.
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