Update April 27 3:48 p.m. EDT: This post has been updated to include Reliant Funding.
If you had any problems get a Paycheck Protection Program (PPP) loan through a bank, you may have another option: fintechs. The Small Business Administration has authorized a number of FinTech companies to provide loans – either through the companies themselves or through their partner banks – and it might prove to be easier for business owners. who do not have a long-standing relationship with a traditional bank.
While President Trump is expected to sign a new Friday 320 billion dollars in funding for PPP, lenders currently have a backlog of applications. Like the initial allocation of $ 349 billion, this new money is unlikely to last long.
Alexander Tiktin, bankruptcy, restructuring and creditors’ rights lawyer at Davidoff Hutcher & Citron, said he had started advising clients to turn to fintechs for financing. “Based on our experience,” he says, “Fintech companies have been able to process applications relatively quickly and efficiently without too many complications. His firm works with around 300 small and medium-sized businesses. He notes that some of his clients who received loan approvals through traditional banks have yet to receive funds, while those who applied through fintech companies, such as PayPal and Kabbage, have received funding in a week.
“Our technology allows us to verify high volumes of applications through automation,” says Kathryn Petralia, president and co-founder of Kabbage. The company has not commented on its average wait time or the number of loans processed.
While some fintechs, such as PayPal, Intuit QuickBooks, and Square, operate similarly to large banks in that they only accept loan applications from current customers, others accept loans from no. anyone.
“The people who have come to Funding Circle have never been to us before,” says Ryan Metcalf, head of US regulatory affairs and social impact at Funding Circle, itself a fintech. “A majority of our borrowers told us that they had been turned away from their primary depository institution. Funding Circle, which the SBA approved as a lender shortly before the initial PPP funds were depleted, has yet to process a loan. But the company has “thousands” of them in its queue, according to Metcalf.
Approved FinTech PPP Lenders
The fintechs below have been approved by the SBA and you can apply for a loan directly through them. Some of these companies will only accept requests from current customers or account holders.
- PayPal – only for current customers
- Intuit QuickBooks – only for current customers
- Square – only for current customers
- On the bridge
- Fundraising circle
- Loan capital
Fintechs working with partner banks for PPP loans
The following companies do not process SBA loans themselves. You can apply for a loan through them and they will package it and apply for a loan through a partner bank.
- Fundera – an online marketplace for small business loans that allows business owners to approach multiple lenders with one application.
- Lendio – a platform that helps small businesses match their loan requests with available financing options.
- Brex – a financial services company that offers business credit cards and cash management accounts.
- Fundbox – a fintech that helps small businesses with unpaid invoices optimize their cash flow.
- Nav – assists businesses with credit reports, cash flow analysis, access to financing products and other tools to help them obtain financing.
- Reliant Funding – a fintech provider of small business loans.
Inc. will update this list as more fintechs are approved.