A crop of fintechs is trying to help banks and small businesses with the new $320 billion round of PPP loans. Here’s what they’re doing.
- President Donald Trump signed a new stimulus package Friday, meaning the paycheck-protection program for small businesses will be replenished with $320 billion.
- The first phase of the PPP sparked backlash as funds quickly ran out.
- The government allowed alternative lenders to participate this time and broadened the reach of the program, but those involved still point to a laundry list of concerns.
- Even after the application is received, banks are struggling to process and underwrite loans for companies they don’t have a banking relationship with.
- Experts warn that lenders and borrowers also need to consider how they will be be able to track the paperwork to ensure loans are forgiven.
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President Donald Trump signed a new stimulus package on Friday that replenishes funds for the paycheck-protection program for small businesses, but hiccups around distributing loans in such a large-scale operation may be far from solved.
The new package injects $320 billion into the PPP, which is aimed at helping small businesses with government-backed loans, after its initial $350 billion in funding ran out in just two weeks.