Fintech companies PayPal and Intuit were approved by the Small Business Administration (SBA) to distribute funds as part of the U.S. agency's emergency lending program, enacted amid the ongoing coronavirus pandemic.
PayPal and Intuit released statements on April 10, declaring their participation after the SBA's approval, according to coverage by CNBC. The SBA plans administer $350 billion in emergency loans, although lawmakers on Capitol Hill and the White House are wrangling over plans to boost that amount.
Intuit is participating through its QuickBooks Capital subsidiary. "As the financial source of truth for millions of small businesses, we have a unique opportunity to help remove friction from the system. QuickBooks Capital will automate much of the application process so small businesses and other eligible applicants get relief quickly," Alex Chriss, EVP and GM of QuickBooks, said in a statement.
"We are eager to deploy our capital and expertise to do our part in helping small businesses survive this challenging period. The first loans have been applied for and issued," Dan Schulman, PayPal's president and CEO, wrote in a statement posted on LinkedIn.
The inclusion of non-bank fintechs in the ranks of institutions charged with doling out loans is a notable one, and it's a development that comes amid ongoing complaints about the implementation of the program by banks. A torrent of requests has resulted in few answers for would-be applicants and hints that some businesses may receive far less support than initially believed.
The SBA program was part of a $2 trillion stimulus bill signed into law by U.S. President Donald Trump on March 27.