PayPal can now issue small-business loans through the government’s SBA PPP program. These are Small Business Administration loans that help businesses keep their workforce employed during the coronavirus (COVID-19) crisis.
SBA PPP stands for Small Business Administration Paycheck Protection Program – you might have heard about the problems businesses have been having as the SBA and banks gear up to serve businesses hit by the pandemic.
PayPal announced on Friday it is one of the first non-bank institutions approved to participate.
In a post on LinkedIn, PayPal CEO Dan Schulman said the company has already issued the first loans and said he expects more loans to be issued in the coming days.
“We are eager to deploy our capital and expertise to do our part in helping small businesses survive this challenging period,” he said. “Thanks to Congressional leaders and the Administration for ensuring the CARES Act allowed companies like PayPal to help distribute funds quickly to those businesses that are most impacted.”
We’re waiting to hear from PayPal about how many loans it has issued under the program thusfar and about interest rates. In the meantime, you can find the full press release on the PayPal website.
Update 4/13/2020: A PayPal spokesperson told us it does not disclose the number of loans issued so far through the program, and said interest rates are dictated by the US CARES Act, as are the loan forgiveness criteria. He provided a link to details on the SBA.gov website.
And remember, the scammers are out in full force trying to capitalize on anxious people, so avoid clicking on links in emails to log in to any sites.
Update 4/14/2020: Here’s a link to learn more: PayPal.com/ppploan. Note that it takes you to LoanBuilder.com, which is a PayPal lending product for non-PayPal businesses (and a legitimate PayPal website), according to the PayPal spokesperson.