Fintech lenders sidelined in second round of PPP funding

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By Jennifer Kang
23 Apr 2020

Congress set aside $60bn for small businesses in the second round of funding for the Paycheck Protection Program (PPP), but excluded fintechs from participating in distributing the funds. While fintechs thought the pandemic could be a chance to solidify their standing in the lending world, legislators have been reluctant to give them the opportunity.

The PPP, a forgivable loan program dedicated to helping struggling small businesses, exhausted the first $349 billion pool of funds last Friday after receiving an overwhelming number of applications. The Small Business Administration (SBA), which oversees the program, said it approved more than 1.6 million loan applications ...

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