14 April 2020

Coronavirus: Bank too busy? Business too small? SBA approves Fintech company as Paycheck Protection Program (PPP) lender

M. Ridgway Barker
Partner | US

Many companies who meet the requirements to receive loans under the SBA’s Paycheck Protection Program (PPP) are unable to obtain them because they do not have a relationship (or a sufficiently large relationship) with a bank that is qualified and actively participating in the PPP. Further, in light of delays in receiving loans from banks due to the due diligence requirements which banks impose or believe that they must follow, even those with a sufficient relationship may find a delay in satisfying those conditions and receiving the funds.

On Friday, Intuit’s QuickBooks Capital received approval as a non-bank lender to participate in the PPP. With QuickBooks Capital, small business owners who are QuickBooks Payroll customers are able to get assistance with determining their eligibility. The software simplifies the application process using automation and, in coordination with the SBA, disburses the PPP funds, making it faster to gain access to the relief. If the owner keeps all employees on the payroll for 8 weeks and spend the loan on qualifying expenses, the application will assist with having the loan forgiven as permitted under the PPP.

Intuit Aid Assist also maintains a free website designed to help small business owners and self-employed assess eligibility for federal relief from the SBA, including loan amount and loan forgiveness, and then provides directions on where to apply.

Click here to read insights on how we can weather the coronavirus with you.

M. Ridgway Barker Partner | Greenwich

Category: Article