PayPal, Intuit and Square Capital are some of the non-bank institutions that are now also approved to participate in the SBA’s Paycheck Protection Plan, which is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
“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 in a press release. “We are eager to deploy our capital and expertise to do our part in helping small businesses survive this challenging period.”
Intuit, which claims that one out of every 12 American employees is paid through QuickBooks Payroll was also approved to offer these loans through Quickbooks Capital. The program site gives details about the qualification and application process.
Square Capital was the latest Fintech company to announce its approval as a PPP lender today. Per their website, “We’re working to help distribute this stimulus money to small businesses around the country as quickly as possible. We’re not accepting applications just yet, but we’ve created a guide to help you understand what you’ll need to apply for funds.”
Fintech companies had been pushing for weeks to be included in that stimulus plan, and this is a welcome development for these companies as well as the customers who now have additional avenues to access the relief programs.