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As banks across the country continue to work with the U.S. government to distribute the $350 billion set aside to help small businesses, Financial Innovation Now, an industry group representing tech-focused lenders such as Square, Intuit, Stripe and PayPal, has also been working hard. The organization’s goal has been to ensure its members can be part of the distribution chain according to a report on CNBC.
PayPal said it has provided access to more than 900,000 loans and cash advances, and access to more than $15 billion in funding to more than 305,000 small businesses, which is why it argued strongly to be considered as a lending source for the Paycheck Protection Program.
In March, FIN sent a letter to Congress requesting its members be included in the distribution process, citing its members could distribute funding faster due to the technology they used on a regular basis. The organization and fintech members kept pressure on Congress until last week when the Small Business Administration approved PayPal and Intuit QuickBooks to take part in the Paycheck Protection Program.
“This is a race to save jobs in the present and for the future,” said Dan Schulman CEO of PayPal in a press release. “We are eager to deploy our capital and expertise to do our part in helping small businesses survive this challenging period.”
Intuit Quickbooks, like PayPal, will act as a direct lender for small businesses applying for the PPP loans, but in addition, Intuit it will also process payroll information that small businesses need to provide to lenders before getting approved.
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Topics: Coronavirus / COVID-19