Sponsored By

Fintechs Join the PPP FrayFintechs Join the PPP Fray

Fintechs eager to differentiate from traditional banks are gaining governmental approval to disburse small business loans.

Samuel Steinberger, Senior Technology Editor

April 13, 2020

2 Min Read
Fintechs Join the PPP Fray

The Paycheck Protection Program, or PPP, could be a great opportunity for some fintechs to shine. Square, PayPal and Intuit have all been approved by the U.S. federal government’s Small Business Administration to provide aid in the form of loans, according to a report by TechCrunch.

The PPP program has been plagued with delays as RIAs and others interested in helping their own small business clients have rushed to apply for loans. Long wait times on calls to lenders and unclear guidance have made a stressful process even more fraught, according to some advisors.

On Friday, PayPal received approval to deploy capital and expertise to small businesses. “The first loans have been applied for and issued. We expect more loans to be issued in the coming days,” said Dan Schulman, president and CEO of PayPal, in a statement

Intuit launched a feature called “Intuit Aid Assist” to help U.S.-based businesses, self-employed individuals, contractors, freelancers and gig workers navigate between different business relief programs and assess loan eligibility. On Friday, the firm’s QuickBooks Capital nonbank lender received the green light to disburse PPP funds.

The latest fintech to join the list, Square, received approval on Monday and plans to make loan applications available this week, according to Jackie Reses, the head of Square Capital. That application will be available on the Square Dashboard. 

Stripe, a fintech familiar to advisors for its association with Michael Kitces and Alan Moore’s startup AdvicePay, has also argued it should be included as an online lender permitted to disburse PPP loans. A trade group, Financial Innovation Now, has written to legislative leaders noting that “our companies could rapidly disburse approximately $100 billion in capital to vulnerable small businesses, in many cases within weeks.”

Want The Daily Brief delivered directly to your inbox? Sign up for WealthManagement.com's Morning Memo newsletter.

About the Author

Samuel Steinberger

Senior Technology Editor, WealthManagement.com

Samuel Steinberger is Senior Technology Editor for Informa Connect’s WealthManagement.com. In his role, Mr. Steinberger provides the publication’s wealth and financial technology coverage. 

Mr. Steinberger’s editorial insight and familiarity with technology accelerates Informa’s growth within the financial advisor and wealth management communities, providing in-depth news for advisors and financial professionals. 

Before joining Informa Connect, Mr. Steinberger produced documentaries with former CNN anchor Soledad O’Brien at Soledad O’Brien Productions (formerly Starfish Media Group). He specialized in research, shooting and editing, as well as finding distinct voices to explain topics like mental health, poverty and racial divide. 

Prior to joining Soledad O’Brien Productions, Mr. Steinberger managed multi-departmental technology projects for global legal technology leader Transperfect Legal Solutions. After obtaining his graduate degree in journalism from Columbia University, he completed his transition from technology management to media. 

Mr. Steinberger is an award-winning journalist, author and researcher who has written, edited and reported for a number of publications, including The New York Times, Financial PlanningAmerican Banker and PBS. He is founder of beverages publication Give Me Weird Drinks

Mr. Steinberger’s technology analysis and insight has been featured in several books on virtual and augmented reality. Mr. Steinberger has received awards and recognition for his reporting and research, including the American Business Media's prestigious Jesse H. Neal Award for editorial excellence.

Follow on Twitter: @slsteinberger