As Congress considers to extend the PPP, peer-to-peer lending platforms may continue to play their crucial role in funding small business owners. When the fintech platforms received the green light from the U.S. Small Business Administration, it was late for the fintech platforms to participate when the PPP ran dry back in April. Once more PPP funding was approved, these platforms were able to shine and prove their worth comparing to banks during the second round of PPP.
Peer-to-peer lending platforms should be considered as an essential player to continue assisting consumers. Not only does P2P lending platforms typically have prime technology, but also they have the efficiency to process immense volumes of loans requests. Also, these fintech companies have been flexible to new regulations. Once PPP funding becomes dried up, users may have to turn to another funding source besides their typical banks, allowing for P2P lending platforms to enforce their importance in the lending ecosystem.
Although there is uncertainty in the air ranging from the global pandemic to the upcoming election, there is no doubt P2P lending has proved its worth and will continue its worth during this economy.