The Wall Street Journal reported that small businesses continue to borrow from unregulated online lenders, raising concerns about “sky-high” rates and other costly terms.

In 2019, one-third of small businesses applied for a loan, up from 19% in the previous year, according to research from the Federal Reserve.

The Journal reported that tech-enabled lenders are meeting the needs of small businesses that banks are unable to serve, but often at the detriment of the borrowers who are often unable to repay their debts.