Here's why this PPP loan data might actually be good news for small businesses:
PPP was meant to be a lifeline to small businesses as a stop gap measure to cover expenses during the Covid-19 crisis. Yet the larger companies stepping in and receiving funds muddied the waters regarding the intent behind PPP. In fact, Treasury Secretary Steve Mnuchin was quite clear when he said in reference to these bigger companies getting PPP that “The owners should be apologizing that they took this, not just giving the money back.
“In a matter of weeks, we will disburse more dollars to small businesses than we did in all of 2019, serve more new customers than our last two years combined, and process over 40 percent of the average PPP application volume of the largest three banks in the country,” says Kabbage co-founder and CEO Rob Frohwein.
The fact that fintech has been able to meet the need of smaller businesses has not been lost on those in the industry. They were able to process these loans quickly and focused on new customers as well as existing. That was a much needed lifeline to get access to the program. Frohwein understands why some feel this way. “In general, there are certain frustrations with the program that every lender has faced,” he says. “We’re proud of the fact that we’ve successfully served over a hundred thousand customers.”
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fed says around 600 smaller banks tapped PPP facility in its first daysAround 600 banks, most of them small community institutions, tapped the Federal Reserve's Paycheck Protection Program facility for about $30 billion of loans as of May 6, the U.S. central bank reported on Saturday in its first detailed disclosure under the new program.
Read more »
Most companies face little risk of punishment for taking PPP loans, legal experts sayChanges to guidance in the small business loan program may give ammunition to critics who charge that the government is too lax in its oversight.
Read more »
Why Doing Nothing Is As Healthy for You As Working Out'Even when I did have time away from my computer during my work cyclone to run, shower, or eat, I was also listening to podcasts or scrolling through Instagram. What I didn’t do was daydream, or stare blankly into space, or do any kind of nothing at all.'
Read more »
Why Some People Can't Stop Thinking About Their ExesHow recovering after a breakup is different for men and women—and who tends to have the more difficult time
Read more »
Coronavirus: Why do well-informed people subscribe to conspiracy theories?We speak to an expert on conspiracy theories who tells us why people hold onto unfounded beliefs even when presented with the facts.
Read more »