Financial Innovation Now (FIN), a trade group that represents PayPal, Stripe, Square and Intuit had asked for permission from the members of the Congress to be made a part of the emergency U.S. government fund program.
The group stated that the FIN is mainly concerned with businesses that shall run out of working capital in a probably less than 3 weeks. Most small businesses are not usually well served by the traditional financial institutions and federal small business loans also do not deliver funds fast enough.
Fintechs have always argued they can help in streamlining the loan process for small businesses that have been often overlooked by bigger banks. Fintechs such as Kabbage that reconfigured the business to be able to handle SBA loans have voiced out their calls to let nonbank lenders permitted for participation in the efforts for coronavirus relief.
Kabbage has been working with the banks that have not been named yet to aid in processing the SBA loans and shall become a direct lender. The capability of processing the loans by SBA in the middle of the national crisis has proven to be an opportunity for other nonbank lenders to demonstrate how their technology has set them apart.
Apparently, Square, Intuit and PayPal have announced that they been approved for the program. Dan Schulman, the CEO and President of PayPal commented that the company is in the middle of a race to help in saving jobs during the pandemic crisis.
He further added that the company is looking forward to deploying its capital as well as expertise to do its job in aiding the small businesses to survive the challenging phase. The company is also thankful to the leaders of the Congress who ensured that the CARES Act has let firms like PayPal support and help in the distribution of funds to the most affected businesses rapidly.
Intuit has announced that eligible candidates can even apply for PPP via the firm’s QuickBooks Capital Systems.