Loan program featured image
Banking & Finance Business & Economics News Stories Technology

PayPal, Intuit and Square approved to loan SMEs

Fintech companies PayPal, Intuit and Square opened their arms to SMEs that need help – offering a loan program.

COVID-19 has been shattering big and small establishments. But the outbreak has been affecting the small businesses differently, given all the lockdowns around the world. Several companies are initiating donations and fundraising to support their government to fight the pandemic.

But how about these small and mid-size enterprises?

Fintech companies have been pushing to help those SMEs that need help. PayPal, Intuit and Square offered a loan service for SMEs that can keep their employees’ payroll steady for at least 8 weeks.

PayPal Holdings Inc. first announced on Friday, April 10, that they are providing loans to small businesses through the U.S. Small Business Administration (SBA) Paycheck Protection Program.

“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.],” said Dan Schulman, President and CEO of PayPal.

“Today I’m pleased to share that PayPal has been approved as one of the first non-bank institutions to help distribute loans under the U.S. Small Business Administration Paycheck Protection Program so we can get critical funding into the hands of our small business customers across the U.S. We are eager to deploy our capital and expertise to do our part in helping small businesses survive this challenging period. The first loans have been applied for and issued. We expect more loans to be issued in the coming days. Thanks to Congressional leaders and the Administration for ensuring the CARES Act allowed companies like PayPal to help distribute funds quickly to those businesses that are most impacted,” he added.

Intuit’s QuickBooks Capital, on the other hand, was also approved by the regulator. Intuit has also launched a new program called Intuit Aid Assist, a program in response to the COVID-19 crisis. 

The Intuit Aid Assist is a free website that authorizes entrepreneurs to determine how much federal relief they are qualified for under the Coronavirus aid, Relief, and Economic Security (CARES) Act of the SBA.

Sasan Goodarzi, CEO of Intuit said, “Many consumers and small businesses are struggling to make ends meet and provide for their families. They are facing a loss of income and a lack of savings to weather the storm. The U.S. government has stepped in with much-needed relief and we’re partnering closely to help. We applied our artificial intelligence and rapid innovation capabilities to help Americans navigate these offerings and get access to the relief they need quickly.”

Meanwhile, Square was also approved by the US Treasury to participate in the coronavirus relief program on Monday, April 13. The company will start working with Celtic Bank to launch the lending program.

“The PPP is a first-of-its-kind stimulus program, and details are developing daily. The Square Capital team has been busy behind the scenes sorting the details for you. Right now, we’re working closely with our partners to understand when we’re able to help distribute this money, so we aren’t accepting applicants yet,” said Square.

Last week, it was also reported that Jack Dorsey, Founder of Square, donated $1 billion of his own money to support fight COVID-19.