PayPal Holdings, Inc. (NASDAQ: PYPL) today announced that the company is now providing access to small business loans through the U.S. Small Business Administration (SBA) Paycheck Protection Program. This follows approval from the SBA for PayPal to participate in the program as one of the first non-bank institutions.
"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, PayPal. "We are eager to deploy our capital and expertise to do our part in helping small businesses survive this challenging period. We are thankful to Congressional leaders for ensuring the CARES Act allowed companies like PayPal to help distribute funds quickly to those businesses that are most impacted."
Since 2013, PayPal has used innovative approaches and relevant data to provide access to loans and cash advances for young entrepreneurs and woman-and-minority-owned businesses, which often struggle to qualify for financing from traditional financial institutions. Through its financing solutions, PayPal has provided access to more than 900,000 loans and cash advances, providing access to more than $15 billion in funding to more than 305,000 small businesses.
Last week, PayPal announced a set of measures to assist its business customers impacted by the coronavirus, including waiving certain fees and deferring repayments on business loans.