PayPal will be providing access to small business loans through the U.S. Small Business Administration (SBA) Paycheck Protection Program (PPP).
This follows approval from the SBA for PayPal to participate in the program as one of the first non-bank institutions.
“Small businesses have been hit especially hard by the coronavirus crisis. 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. We are eager to deploy our capital and expertise to do our part in helping small businesses survive this challenging period. We are thankful to Congressional leaders for ensuring the CARES Act allowed companies like PayPal to help distribute funds quickly to those businesses that are most impacted.”
Dan Schulman, President and CEO, PayPal
PayPal Supports Small Business
Since 2013, PayPal has provided Working Capital and Business loans using relevant data to provide access to loans and cash advances for young entrepreneurs and woman-and-minority-owned businesses, which often struggle to qualify for financing from traditional financial institutions.
Through its financing solutions, PayPal has provided access to more than 900,000 loans and cash advances, providing access to more than $15 billion in funding to more than 305,000 small businesses.
These programs are part of a partnership between PayPal and WebBank, a Utah-based FDIC member bank. PayPal is working with the same banking partner WebBank for the Paycheck Protection Program loans.
How to Apply For PayPal Paycheck Protection Program Loans?
As of this announcement, PayPal is not ready to take applications yet but says it will be ready soon. On its website, the company is suggesting small businesses gather all the relevant information required by the SBA to apply for a PPP loan.
The company has established a dedicated PPP loan web portal at https://www.paypal.com/us/webapps/mpp/ppploan where it will begin accepting PPP applications as soon as it is ready.
Time is of the essence, as the program has been widely popular. However, Congress and the administration are trying to work out a deal for another $250 billion in PPP funding to help small businesses during the coronavirus (COVID-19) crisis.
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