In December 2025, ABL Advisor ran the feature “Main Street MCA Distress: Emerging Opportunity for Secured Finance and Credit Rehabilitation,” highlighting a critical shift in the small-business financing landscape as changes in Small Business Administration (SBA) policy have effectively closed the door on refinancing Merchant Cash Advance (MCA) obligations through government-guaranteed programs.
The piece explores how thousands of Main Street businesses are now trapped in high-cost MCA debt, with daily withdrawals eroding cash flow and working capital. With the SBA no longer offering a path out, this structural shift has created what the author describes not only as distress for borrowers and lenders alike but also as a unique opportunity for the private secured finance market to step in.
According to Michael Petrecca, CEO of RISE Alliance, navigating this new terrain requires thoughtful restructuring rather than quick-fix promises. He is quoted in the article saying:
“Payment renegotiations can align the interests of MCA creditors and borrowers. However, this can only be understood as a first step toward graduating MCA borrowers back into conventional credit markets.”
This perspective underscores RISE’s emphasis on structured approaches to rehabilitation that go beyond temporary relief, focusing on restoring creditworthiness and transitioning businesses back into traditional financing channels.
In short, the article argues that while policy changes have intensified MCA distress, they have also opened a door for disciplined secured finance professionals to help Main Street borrowers rebuild, protect collateral and guide them back toward sustainable credit.
