Fintech companies PayPal and Intuit QuickBooks on Friday announced that the Small Business Administration approved their participation in the Paycheck Protection Program, as reported by CNBC. PayPal and Intuit are among the first non-bank, fintech companies to be certified for the emergency lending program for the Small Business Association.
“This is a race to save jobs in the present and for the future,” PayPal CEO Dan Schulman said 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.”
In addition to acting as a direct lender, Intuit QuickBooks said:” it would process payroll information, which small businesses need to provide to lenders in order to get approved.”
As reported by CNBC, PayPal 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
The closures and safety steps mandated to control the spread of coronavirus (COVID-19) have affected small businesses severely. Many Small Businesses are forced to close down, and now owners are struggling to get the cash to survive the crisis.
With the Paycheck Protection Program, which was included in the Coronavirus Aid, Relief and Economic Security (CARES) Act passed on 27 March, the US federal government is helping small businesses.
The government’s $349 billion Paycheck Protection Program is forgivable loans aimed at keeping businesses paying employees and covering other company expenses during the COVID-19 crisis.
The U.S. Small Business Administration (SBA) will offer loans to qualifying businesses of up to $10 million, and lenders including banks and credit unions will provide loans. All businesses can apply with 500 or less workers – including non-profits, veteran organisations, tribal business concerns, sole proprietorships, self-employed individuals and independent contractors. Businesses in some industries may hire more than 500 workers if they follow the applicable SBA workforce size requirements for those industries