May 22, 2020
Self-Employed and Contractors Take Special Note
U.S. Chamber of Commerce Reports on Fintech PPP Assistance
The U.S. Chamber of Commerce reports on eight FinTech (Financial Technology) companies offering small businesses access to PPP loans.
Originally, traditional banks were the only lenders offering access to the SBA’s PPP loans. Now, FinTech companies have also been approved by the SBA to accept PPP applications.
It is important to realize that sole proprietors and contractors can apply for PPP. You can find the details about this and more in an article Self-Employment, 1099s, and the Paycheck Protection Program.
Sean Ludwig shares this important information on U.S. Chamber of Commerce site:
Here are eight innovative FinTech companies now offering PPP loans to small businesses, as well as several FinTech firms that can help you apply for PPP loans.
BlueVine, an online lender that has processed more than $3 billion in loans since its founding in 2013, has begun accepting PPP applications. On top of a swift application process, BlueVine says it has “experienced advisors” on hand to answer questions and help with the application.
Since its founding in 2010, Credibly has issued more than $1 billion in loans to small and medium-sized businesses around the United States. Credibly claims it has simplified the process and only takes “minutes” to apply for a PPP loan application using its platform. It also said it has facilitated more than $500 million in PPP loans to date.
3 Funding Circle
Funding Circle, one of the largest online lenders, has provided more than $11 billion in loans to 81,000 businesses worldwide since its founding. The company is now accepting PPP loan applications and helping provide those loans to small businesses, adding to its already large portfolio. It has also created an easy-to-digest PPP guide that includes a calculator and walk-through of the process.
4 Intuit QuickBooks
Intuit QuickBooks, which is best known for its ubiquitous accounting and payroll software, is accepting PPP loan applications for current customers. Small businesses that are either Payroll customers or QuickBooks Self-Employed customers who filed 2019 taxes with TurboTax Self-Employed can apply and receive a PPP loan from QuickBooks Capital.
OnDeck, the largest U.S.-based online small business lender, has issued more than $13 billion in loans to over 100,000 since its founding in 2017. The company has recently begun accepting applications for the PPP loan program. The company also created a COVID-19 hub, which includes information on PPP loans, EIDL loans, local and state assistance options, and other resources for navigating the coronavirus pandemic.
PayPal, one of the largest FinTech firms in the world, was one of the first companies of its kind to offer access to PPP loans. The company’s initiative has been primarily set up to help current PayPal merchants, but non-merchants can also apply through their portal.
7 Ready Capital
Ready Capital, a real estate and small business lender that has issued more than $3 billion in loans in the U.S., is yet another large player helping small businesses with PPP loans. As of this writing, the company is backlogged with PPP applications, but it may take new applications soon.
Square, which has been providing various payment and business tools to small businesses for years, was an early FinTech company to begin offering access to PPP loans. However, the company is focused primarily on helping Square sellers first with PPP loan applications before accepting non-sellers later.
Other FinTech companies helping businesses with PPP applications
A number of FinTech companies are assisting with the preparation of PPP applications and then sending those applications to partner banks that are SBA-approved. These FinTech companies may be worth checking out if any of the above lenders are unable to help or are overloaded with requests:
For more resources and information, check the U.S. Chamber of Commerce site here.
Informative PPP Video Discussion with Barry Moltz
For an informative PPP discussion, Barry Moltz speaks with Ken Burtnick at Paychex to discuss how small businesses can apply through FinTech companies to get a loan from the Paycheck Protection Program (PPP). Paychex works with three of the companies cited above by the U.S. Chamber of Commerce.
You can hear their discussion here (9:20 long)
Barry Moltz is an author and speaker in small business and entrepreneurship. He is a member of the Entrepreneurship Hall of Fame and has taught entrepreneurship as an adjunct professor at the Illinois Institute of Technology.
It’s Worth the Effort (and Frustration)
More than a few people have been frustrated by the process and even initially denied PPP loans. However, with persistence, many have succeeded in securing this essential financial help. If you feel you’ve hit a deadend or are not receiving response, try another resource.
Specifically, we know a number of small businesses that have been successful in receiving SBA PPP loans by applying through Lendio and Kabbage. The process may be frustrating, but if the loan comes through, it’s well worth the headache and effort.