In early 2023, a wave of bank runs among small and midsize lenders sent shockwaves through the financial system, tightening the screws on small business lending. Smaller banks, more likely to approve loans for small business owners, faced unprecedented pressure. Coupled with the Federal Reserve's interest rate hikes, persistent inflation, and new regulations sparked by the turmoil, accessing capital has become a Herculean task for entrepreneurs. Yet, amidst these challenges, a transformative trend is reshaping the lending landscape: the Digitization of financing and the rise of fintech lenders . This article examines how these forces, along with strategies such as risk-based pricing and technologies like artificial intelligence, are reshaping small business lending—and what it means for entrepreneurs, particularly those who have been historically underserved. The Capital Conundrum for Small Businesses Small businesses are the backbone of the U.S. economy, but securing financing r...