PayPal, Square Start Lending to Small Businesses Hurt by Virus
- Many small businesses can’t get PPP funds from big U.S. banks
- Solving tech challenges and getting SBA approval took time
Photographer: Gabby Jones/Bloomberg
This article is for subscribers only.
Financial-technology firms PayPal Holdings Inc., Square Inc. and Intuit Inc. are starting to lend to small businesses that couldn’t get access to coronavirus relief funds through the biggest U.S. banks.
Fintechs had been pushing to provide emergency loans to small businesses since mid-March, more than a week before passage of federal legislation that created the Paycheck Protection Program. The companies have said that they can approve loans faster than traditional banks and reach the most vulnerable businesses but ran into obstacles before getting Small Business Administration approval.