Fintech companies on Friday announced they have won their fight to take part in the Paycheck Protection Program.
PayPal and Intuit QuickBooks said Friday that they could now participate in the distribution of funds to small employers through the coronavirus stimulus program, according to CNBC. In addition to providing the loans, Intuit Quickbooks will also help small business owners process the payroll information lenders require for loan approval.
“This is a race to save jobs in the present and for the future,” PayPal CEO Dan Schulman said in a statement. “We are eager to deploy our capital and expertise to do our part in helping small businesses survive this challenging period.”
Fintech companies claim they are in a unique position to handle the speed at which the loans need to be distributed.
“In the last crisis, banks stepped away from the kinds of lending that our members do,” Scott Stewart, the head of the Innovative Lending Platform Association, recently told TechCrunch. “The bank process [for lending] is quite lengthy. Our members are underwriting loans using algorithms at speed and scale.”