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The Paycheck Protection Program has been created to assist small businesses during this unprecedented time. The SBA PPP program is only a part of the CARES Federal Stimulus package, which works to counteract the economic downturn related to the COVID-19 pandemic. Recently, the SBA PPP has run into several challenges while dealing with the delivery of funding.
Multiple banks have claimed that they were flooded with applications and have met already their lending limit — just three days into the program, Wells Fargo surpassed its $10 billion lending limit. Banks, like Chase and Bank of America, have limited applications to existing customers, while Citibank waited one week before allowing any applications to come in. Capital One still has not accepted any applications for PPP loans, as the first round of $350 billion has already been exhausted.
Some company’s leaders have been looking into other resources, including the fintech sector, to source funds. Both PayPal and Intuit have been approved by the SBA to act as non-bank lenders of PPP loans. PayPal has already started issuing loans to borrowers, and they told Fortune that “there is no cap on how much money it is willing to loan.”
Along with Paypal, other lending platforms, such as OnDeck and Square Capital, have been approved to provide PPP loans to small businesses. Kabbage, Fundera, and Lendio are expected to be approved in the next several weeks.
The Paycheck Protection Program recently received more funding, with $310 billion added to the program. There are also other options, like the Main Street Loan Program, that allow larger businesses to borrow money if they incur between $1 million – $150 million in debt.
At TGG, we are dedicated to helping our clients and small businesses to adjust, understand, and better position themselves among the changing economic times. Head to our COVID-19 Resource Center to get clarity on the current programs implemented to keep businesses afloat.
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