5 Things To Know About Small Business This Week: May 3

NEW YORK ( TheStreet) -What happened in small business this week?

This week in small business is all about jobs and financing.

1. April jobs numbers surprise to the upside but are small businesses hiring? The U.S. workforce added 165,000 jobs in April, the Labor Department said Friday, as national unemployment fell to 7.5% from 7.6%. Payrolls were expected by economists to have risen by 145,000 jobs in April.

According to the ADP National Employment Report, which found U.S. employment increased by 119,000 jobs last month, small businesses contributed 50,000 of those new jobs, two-thirds of that number from businesses with fewer than 20 employees. The result is good but not great.

"April was another positive, albeit lackluster month for job creation -- but small-business owners are expressing a bit more enthusiasm in hiring plans in the months to come," National Federation of Independent Business Chief Economist William Dunkelberg said in a statement this week.

According to the association's own monthly economic survey, which will be released on May 14, more small business owners are planning to hire over the next three months. Job creation plans rose 6 points, to a net 6% of small employers who are now planning to increase total employment in the next three months.

"This is a nice improvement over the 4-point decline in hiring plans we saw in March," he said. "Perhaps the 'frost' in March didn't do as much damage to the 'green shoots' as many had feared."

2. Will Twitter follow Facebook with an IPO? Twitter hired Morgan Stanley ( MS) managing director Cynthia Gaylor to run corporate development. Gaylor has 17 years of investment-banking experience and will focus on strategy and mergers and acquisitions, Bloomberg said Thursday.

The company is "widely predicted to hold a share sale before long to help it bankroll expansion and give early funders a way to realize financial gains on their investments," the article said.

3. Speaking of public offerings... Music app Shazam has hired former Yahoo! ( YHOO) executive Rich Riley as its new CEO and is planning an IPO in the near future, the company said in an April 29 press release.

Andrew Fisher, who has led the company as CEO since 2005, has been appointed to the position of executive chairman, a new position. John Pearson who has been chairman since 2006 will remain on the board. Fisher said he will focus on corporate development and strategy while Riley runs the business.

5. Google sees opportunity in alternative lending, makes two investments. Google ( GOOG) took a minority stake in peer-to-peer lender, Lending Club. Google invested $125 million as part of a secondary transaction whereby new and existing investors acquired shares from existing investors, Lending Club announced this week.

"Lending Club is using the Internet to reshape the financial system and profoundly transform the way people think of credit and investment," Google's vice president for corporate development David Lawee.

Lending Club has issued more than $1.65 billion in loans since 2007, including over $350 million in the last quarter through so-called peer-to-peer lending, which facilitates personal loans to borrowers from qualified investors. Small businesses have been increasingly using alternative forms of lending, such as peer-to-peer lending, when more traditional financing has remained difficult to obtain.

Separately Google Ventures led the investment in alternative small-business lending platform On Deck Capital, as part of its $17 million expanded Series D investment round on Wednesday. PayPal co-founder and venture capitalist Peter Thiel as well as VC-firm Industry Ventures also participated.

The investment brings On Deck's Series D financing to a total of $59 million. The company announced in February that it had raised $42 million in a round led by Institutional Venture Partners.

"On Deck has found an efficient way to connect millions of small businesses around the country with the working capital they need to grow their companies," said Karim Faris, general partner at Google Ventures. "We invested in On Deck because we believe in the team's game-changing vision, strong talent and disruptive technology."

Google Ventures likes to invest in winners, could an IPO for On Deck be around the corner?

5. Seems like the financing spigots are opening in payments. Payments startup Dwolla raised $16.5 million from venture capital firm Andreessen Horowitz, according to All Things D. Partner Scott Weiss will join Dwolla's board.

Dwolla's former investors including USV, Thrive and Village Ventures also participated in the round, All Things D said.

-- Written by Laurie Kulikowski in New York.

To contact Laurie Kulikowski, send an email to: Laurie.Kulikowski@thestreet.com.

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