By Andrew Rathkopf Posted on August 20, 2020 Small- to medium-sized (SMBs) are the backbone of the American economy: 30.7 million SMBs operate across the country and account for 64 percent of new jobs.They represent 99.9 percent of all businesses in the U.S., but they face many hurdles. The U.S. Bureau of Labor Statistics estimates that 20 percent of SMBs fail in their first year and that approximately half do not survive for longer than five. Only 35 percent of such businesses make it past their first decade in operation.The reasons for these failures are varied, but many involve cash flow issues, as 29 percent report they ran out of money and 18 percent cite pricing or supply cost problems. The ongoing pandemic has added new obstacles, too, as social distancing and stay-at-home orders cut off key revenue streams. Seventy percent of SMBs are adding new digital capabilities or enhancing existing ones to continue their operations, but firms often require financing to implement these innovations.A multitude of SMB investors are looking to help, but lending to digitally focused SMBs comes with its own hurdles, including fraud risks and inefficient lending procedures driven by stiff regulatory measures.