On April 8th, the U.S. Small Business Administration (SBA) authorized fintech lenders the opportunity to originate loans for the Paycheck Protection Program (PPP). The PPP is a $350 billion loan program recently passed by Congress that aids small business with loans that cover payroll expenses for at least two months. Prior to April 8th, fintech lenders lobbied for weeks to play a role in the program although some small business owners were not able to submit their PPP application to their banks during this time. Now that fintech lenders are allowed to provide loans, more small businesses are receiving critical financing more efficiently in a streamlined manner. This demonstrates the fintech industry is becoming more widely accepted while continuing to disrupt the traditional lending industry.
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