Alibaba will sell its small-business lending unit to Small and Micro Financial Services, the parent of its affiliate Alipay, in a move to address financial and regulatory concerns ahead of its initial public offering. Alibaba said in a filing that it will sell the business for $518 million in cash and annual fees for seven years. The agreement will also lift a $6 billion cap on Alibaba's share of the proceeds if Small and Micro goes public or is sold. Eric Jackson, founder and managing partner of Ironfire Capital, says the deal should be taken as a net positive for shareholders, as it will increase the value potential of Alipay to them. TheStreet's Brittany Umar has details from New York.