PayPal, Intuit Quickbooks Are First FinTechs To Offer Emergency Loans After US SBA Approval
PayPal becomes the latest financial institution to enter the U.S Small Business Administration (SBA) Paycheck Program. The global payment system becomes the first non-bank institution to enter the program providing loans to SMEs in the USA as the world continues its fight against the Coronavirus Pandemic.
PayPal becomes first non-bank inst. to join SBA
An official announcement on the PayPal website confirms the payment platform received the go ahead to launch loan services in the SBA Payment Protection program. Following the increased strain on small businesses due to COVID-19 pandemic, the SBA set up a network of financial institutions to provide loans to these businesses to avoid closure and prevent loss of jobs in the economy.
The program is highly needed as the U.S recorded over 10 million unemployment claims in the last two weeks, the quickest job loss in her history. Dan Schulman, President and CEO, PayPal, said,
“There is an urgent need to help every qualified business access the funding needed to ensure that as many workers as possible keep their benefits and paychecks. This is a race to save jobs in the present and for the future.”
PayPal is ready for the challenge
PayPal started its loaning facilities back in 2013, analyzing the best candidates for a loan and quickly disbursing the cash for young entrepreneurs. This boosted financial services and commerce making SMEs more convenient, affordable, and secure in their financial transactions.
PayPal looks ready for the challenge presented before it by the U.S SBA and Schuman is ready for the challenge. He completed his address on the recent license grant saying,
“We are eager to deploy our capital and expertise to do our part in helping small businesses survive this challenging period.”
“The CARES Act allowed companies like PayPal to help distribute funds quickly to those businesses that are most impacted.”
Intuit joins the SBA program
Intuit, through its QuickBooks Capital subsidiary, also joined the Small Business Administration Payment protection program according to reports emerging on April 12. Alex Chriss, Executive VP and General Manager of QuickBooks said,
“QuickBooks Capital will automate much of the application process so small businesses and other eligible applicants get relief quickly.”