june it 22nd. islamic extremists capture additional towns in iraq president obama talks about what america can and cannot do. >> what we can't do is think we can play whack a mole. >> signature segment small businesses struggling to get bank loans now turning to alternative sources of credit. >> actually it's a very easy process. in three days we had the money we needed. jeffrey brown on a cultural icon turning 40. next on pbs "newshour weekend." pbs "newshour weekend" is made possible by judy and josh

westin, joyce b. hail, walloch, bernard and irene shorts, citi foundation, roselyn walter. corporate by mutual of america customized and mutual retirement products. that's why we're your retirement company. additional support is provided by -- and by the corporation for public broadcasting and contributions to your pbs station and viewers like you. thank you. from studios at lincoln senator in new york, this is pbs "newshour weekend." good evening, thanks for joining us. muslim extremists who have over run much of northern and western iraq have seized another town 90 miles from iraq's border with jordan. the capture means extremists control a final stretch of a

major highway connecting iraq to jordan. in a television interview that aired today president obama expressed concern about problem, al qaeda in yemen and isis in iraq. he says america has to proceed carefully. >> this is going to be a global challenge and one the united states is going to address. we're not going to be able to address is alone. what we can't do is think we're going to play whac-a-mole and have troops wherever organizations pop up. we're going to have to have a more focused and strategic and train local military to do their jobs as well. >> israeli tanks fired across the border at syrian army positions after what israelis condemned as a, quote, intentional attack. an explosion from inside syria that killed a 13-year-old

arab-israeli and wounded two others. it's unclear what type of explosive was used or by whom. israel warned it will hold syrian responsible for any attacks in its territory. in the west bank israeli defense forces killed two palestinians during their search for three missing israeli teenagers. israel claims hamas responsible for kidnapping. mahmoud abbas condemned kidnapping and says today there's no evidence to support the claim of hamas's involvement. as israeli prime minister benjamin netanyahu said in a tv interview today a recent unity dole undermined hamas's credibility. >> you can't have it both ways. you can't talk about peace with israel and being unity government with hamas who kidnaps teenagers. you can have one or the other not both. >> in egypt today secretary of state john kerry met with newly elected egyptian president al sisi and egyptian foreign

minister. united states has been urging egypt to moderate its policies. yesterday a court condemned to death leader of muslim brotherhood and 182 of its members. earlier this month the united states agreed to send an additional $572 million in military aid to egypt. this is on top of the $200 million in economic aid already delivered this year. the united states suspended military aid egypt. in his first interview since house majority leader kevin mccarthy told fox news today he has no plans to push for any immediate immigration reform. >> i'm on record saying nothing about immigration until we secure the borders. the borders are not secure. until you secure the borders, you cannot have a conversation about anything else. >> today responding to a surge in illegal immigration from central america, the u.s. border patrol announced plans to fly several hundred migrants from south texas to california. the border patrol said since september it has taken into

custody more than 50,000 unaccompanied children entering into the united states. moss of them from honduras, guatemala and el salvador. also from texas, mass graves discovered containing what are believed to be the remains of people who tried to enter the united states illegally through mexico. local officials reportedly paid a funeral home to dispose of an indeterminate number of bodies. they are believed to be buried between 2005 and 2009. the story was first reported by corpus christi times thursday. florida enacted new legislation enacting stand your ground law enabling people to use deadly force if they fear serious injury from an attacker. the new measure signed into law friday by governor rick scott allows those under threat to display their weapons and fire warning shots. the change is inspired by the case of marissa alexander, a woman sentenced to 20 years in prison after she fired a gun but did not harm her allegedly abusive husband. she was not able to invoke stand

your ground as a defense. her conviction was later overturned on appeal. earlier george zimmerman relied on stand your ground to be acquitted in the death of a teenager trayvon martin. in moscow today russian president vladimir putin expressed support from cease-fi cease-fire ukrainian sources. they conferred about the lingering crisis. for more about the situation in ukraine we're joined by andrew. let me ask you, what is life like now that we have you here. does it seem like a city at the heart of a crisis? >> you know, allison, this has been happening for a little while now. i think there are towns more at

the epicenter of the fighting and in places like slovyansk, rebel stronghold not far from here. life has changed a lot. there's serious problems with water, lack of electricity. you know, more than 200, more than 300 people have been injured in the fighting so far. donetsk feels very empty, quiet. a lot of closed shops and a lot of people who found a way to get out of the city for the summer. >> it's interesting that you should mention that because i was surfing moscow times website and there's a huge article there where the headline says in parts of ukraine a daily struggle to survive, the town you mentioned. in terms of the humanitarian crisis, who is that going to put pressure on? cynically, who could use it to their advantage? >> i think the humanitarian crisis is going to put the most pressure on the ukrainian government. to avoid being tainted by a really bad humanitarian crisis

taking place east of the country. so that would put more pressure on them to stop what they call the anti-terrorist operations here in the east. it also puts pressure, too, because a lot of the leaders here say they want moscow to bring in humanitarian aid or bring in peacekeeping troops. so far moscow has been any sort of response to those requests. the proposed cease-fire. it was described putin's reaction was it was a carrot and a stick. what's the carrot and what's the stick? >> the carrot was that russia would be on board with some sort of peace plan and they could call and would call for russian separatist, pro-russian separatists in the country to put down their arms. that's the carrot here. the stick is always the possibility of a militarization of the border. russia put 60,000 troops on combat alert and is holding drills right now. i don't think we're quite at the place where we were in april

when many of those troops were on the border, as many as 40,000. there is still this question of there's always a possibility of a russian intervention, too. it's very possible that the decision to put those two on combat alert was an indication of that. >> andrew ross, "new york times" reporting from donetsk, thank you so much for sharing your reporting. >> thank you. ♪ ♪ and now to our signature segment. tonight we focus on the difficulties small businesses often encounter when they try to get bank loans. it can be a problem not only for those businesses but for the overall economy because loans fuel expansion and expansion leads to new hiring. in fact, small businesses are credited with creating two of every three new jobs. recently new online lenders have popped up as alternatives to banks. the costs are high but the process is dramatically faster.

"newshour" special correspondent stacey tisdale reports. >> reporter: soon after opening d.j.'s delight, co-owners realized they needed to upgrade kitchen equipment. they figured they could easily get a small business loan of about $6,000 to do that. but when linda, who manages the books, tried to go to the bank in 2010, he quickly found out it was going to be anything but easy. >> it's aggravating. you do not have two months to wait for that loan for the bank when you need the money now. it's kind of like getting the door shut in your face. >> so started searching for lending online and came across a lender on deck. he did a little research and applied for the loan, the entire process taking place on line. >> it took literally 10 minutes.

it wasn't anything that took away a lot of my time from running the business or having to gather 50 different documents or tax statements or anything like that. it was a very easy process. in three days we had the money we needed. >> since the financial crisis, small business lending by banks has declined substantially according to federal data. the value of loans of less than $100,000 is down by more than 18% since 2008. while banks have pulled back, new types of sparsely regulated nonbank lenders have stepped in as alternatives hoping to disrupt small business lending. online companies like cabbage, can capital, swift capital, paypal, and his lender on deck are using technology to make fast decisions about small loans but with interest rates that can be several ties that of a bank loan. >> banks have not been natural lenders to this segment of the

market. >> a former software engineer, on deck typically loans to small businesses with less than ten employees. the average loan $40,000 with taerm of one year. it's a type of loan he says is very difficult for a traditional bank make it profitable. >> it allows to you make that $40,000 loan in seconds but using the same analytical depth speeding up a process that was much less efficient. >> can say yes to more small businesses. >> when a business applies for a loan, they quickly analyze 2,000 data points, both big and small, crunches traditional metrics cash flow and business profile but also social data, which means if you're a restaurant like d.j.'s delights, it will be checking what customers say on review sites like yelp. >> what can yelp tell you about creditworthiness.

>> you have to be careful. you don't want to make a decision on a loan because someone didn't like the chicken last night in the restaurant. you can build patterns and models. it will tell you a restaurant doing $2 million in revenue might have this number of yelp reviews or this frequency of yelp reviews. >> extended more than $1 billion in credit since launching in 2007 and raised money from high-profile investors. unlike banks, the loans are not backed by collateral. while they don't disclose detailed data on default, it says the rate is in single digits for loans. for ron it has become a consistent source of credit. the business is on its fourth loa and used money to stock supplies after superstorm sandy and to expand from a sit down restaurant to a small market. >> we definitely wouldn't be

where we are without help. >> just over 12 months. the money isn't cheap. annual interest is 30%, almost six times what a small business loan from a bank would be. >> getting that money even at that high rate worth it. >> it is worth it. it's high interest, of course. when you're a business owner and need the money and your business needs it, you're going to accept it. >> while it worked for him, there have been reports with small businesses running into trouble with high-interest loans from other lenners. while they think the cost of the loans will come down, the average annual interest rate is about 50%. >> rates aren't cheap. how do you justify that higher rate to clients. >> you're paying for speed and convenience. they would much rather have a choice of taking the loan than not have the option at all. i think for the value we

provide, we're priced fairly. >> lenders like on deck have been criticized for taking advantage of desperate small business owners. >> people think small business owners are unsophisticated. our business customer has been in business on average 10 years. multiple economic cycles. it's not like we're taking folks who don't understand what they are doing. >> alternative lenders are still very much alternative. while on deck and others have been growing rapidly lending an estimated $3 billion in total last year, that amount is just a tiny fraction of small business loans given by banks. in total, more than $125 billion in 2013. >> community banks have been innovating for decades. they do the vast majority of small business lending. they do the vast majority of lower dollar lending to small businesses. >> paul is the chief economist for independent community bankers of america. together community banks are responsible for 60% of small

business loans despite being just 15% of the total banking market. industry surveys showed they approved half of all small business applicants. that's less than alternative lenders on the whole but more than on deck and more than big banks which approve 20% of applicants. >> community banks specialize in small business lending, that's because it's a relationship lending where the community bank knows the local market, knows the customer, knows the small business owner personally many times. that really helps with the lending decision and makes a better lending decision than a transaction that has been done online or 1,000 miles away. >> when it comes to cost, banks can offer a much cheaper option for small businesses that qualify. on average 5 pours annual interest for a loan under $100,000. >> many of these new startups are a simple formula, high

rates. maybe simple and quick to get your loan but the rates and terms aren't going to serve the small business owner and not going to serve the best interest of that business. >> noah is convinced technology is ushering in huge chapgs in small business lending. where do you see this alternative lending industry in 10, 20 years. >> i think it loses the designation of alternative. just like today i buy a plane ticket online with price line.com, maybe 20 years ago i would have talked to a travel agent. we are going through that entire cycle. probably year 25 of a 20 year journey in terms of lending. >> since taking out loans with on deck, he thinks he could probably get a loan from a traditional bank, not that he wants one. after paying back the current loan, when he and his partner are hoping to be able to run the restaurant without any loans, traditional or alternative. >> learn about an international

micro lender that adapted its business model for small business owners here in the united states. visit "newshour".pbs.org. a quick update to our signature piece from last sunday. the report from uganda describing that east african crackdown against homosexuality. this week obama administration announced it's trimming aid to uganda and imposing a travel ban on some ugandan officials. it called the ugandan law, quote, counter to universal human rights. the rubik's cube turns 40 this year. now a new exhibit is proving time is only adding to the mystique of the cultural icon. jeffrey brown reports. >> reporter: i couldn't be simpler, or for most of us more

difficult. 26 cubes designed to interlock and rotate around an axis that can be shuffled 42 quintillion ways. yet a rubik's cube can be solved in 20 or fewer moves. it's puzzle delighted millions from young children to this robot. the robot is part of a new exhibit cald beyond rubik's cube. it happened in new jersey to celebrate the 40th birthday of the cube. in a rare public appearance, inventor rubik was on hand to meet fans and talk about the impact of his work. rubik was a 29-year-old architectural professor in budde pe -- budapest when he created the tool in 1964. what began as a spatial tool for

students grew by his own account into something less practical. >> there's no practical use. >> no practical use for this. >> it's -- you can do it freely. it depends on you, for fun, spend some time if you have free time. it's interesting in general. >> everyone who struggled with that object every since will no doubt be happy to learn that it took the inventor himself more than a month to solve his creation for the first time. >> i remember it was an emotional moment. >> it was an emotional moment. >> yes. >> it's estimated more than 350 million rubik's cube have been sold since the puzzle was launched in 1980 making it the best selling toy of all time. about one in seven people have played with a rubik's cube. in case you're wondering rubik lives comfortably. but syringe vented the cube

originally in communist country never got as rich as he might have. >> what i love, he could have invented it 50 years earlier. it didn't depend on any scientific or technological event. >> ceo and president of the liberty science center as well as creative director of the exhibit. >> i think of it as an object that brings so many things together. first of all, it appears to many of our senses. it's tactile, fun to play with. of course it appeals to our brain. i think we look at this object. it comes like this in the box, okay, with no instructions and yet you know what to do. >> the exhibit features everything from the original rubber band and paper clip prototype created in 1974 to the bedazzled cube of rubies, sapphires and diamonds. >> what rubik's cube has done is inspire people in all fields. artis all over the world have used thousands of rubik's cube to make pixel portraits. in this exhibit, we let our

visitors do that. >> in addition to art, it reminds viewers how much the rubik's cube has become engrained in popular culture over the last few decades. even at 40 years old, the cube continues to inspire the next generation of curious minds including competitive speed cubers. >> no two are exactly the same. regardless of how you look at it, i'm always turning in a different way. also think about how to optimize and get faster. even world record holders now will not be world record holders five years from now. it's interesting to watch the scene now and what it go further. >> 14 seconds. not bad, you think? he has a long way to go. current world record for solving the rubik's cube is 5.55 seconds.

>> this is pbs "newshour weekend" sunday. >> technology has changed the way we communicate, the way we do business, and now the way we see art. thanks so some scientific wizardry, a once rumored secret work by pablo picasso has proven to be the real thing. >> for more than a century art lovers discovered the blue peri set in motion by this work, the blue room. for a decade something of a mystery souurrounded the work. as early as the 1950s they wobdered about uneven brushstroke. they noticed an image behind the bathing blond wochlt it wasn't until 21st century infrared technology the truth was revealed and confirmed by experts. when creating the blue room he painted over another work, portrait of a bearded man

wearing a bowtie. >> picasso known to paint over his own pictures. there are other examples where there's documentation, drawings, or types of documentation where it's confirmed the painting underneath the painting is by picasso. >> one explanation for why picasso would do such a thing has less to do with art and more to do with money or lack of it. at the time the 20-year-old spaniard living in paris was just one more struggling artist. to preserve what little he had, he sometimes reused canvases. >> we're trying to understand by identifying this person is something about the circle of individuals that picasso was interacting with. that's a very important moment early in his career when he was just really beginning to make his name known. >> for now we can all still marvel at a new view of the blue room.

some late news, reuters said the u.s. missile defense system has successfully sbrrintercepte simulated missile. five out of ten tests have failed. president obama has expressed concern that the instability in iraq could spill over into jordan. in a secretly recorded conversation, a person identified as poland's foreign minister said his country's alliance with the united states is harmful because it gives poland a false sense of security. he says, quoting now, we're suckers. total suckers. on the "newshour" tomorrow, a preview of key primary contests. i'm allison stewart. thanks for watching.

pbs newshour weekend is made lewis b. and louis hirsch feld cullman. cheryl and philip milstein, bernard and irene schwartz, the citi foundation, rosalynn p. walter. corporate funding provided by mutual of america designing customized, indivial and group retirement products. that's why we're your retirement company. additional support is provided by -- and by the corporation for public broadcasting. and by criontributions to your s station by people like you. thank you.er

♪ ♪ ♪ >> the greats of tomorrow, today , on stage at curtis. hats.et -- i wear any i am the taskmaster on occasion, or i inspire, or i tried to convince singers of maybe a different approach