How Kabbage saved its small business lending operation in the middle of the pandemic

  • 📰 CNBC
  • ⏱ Reading Time:
  • 37 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 18%
  • Publisher: 72%

Business News News

Business Business Latest News,Business Business Headlines

Kabbage had to pause its primary, traditional lending business after the economic shutdowns so it could focus on helping the government distribute emergency funding.

, which allowed companies to apply for 10 weeks worth of funding to pay their employees and soften the blow caused by the pandemic.PPP funding to over 130,000 businesses, with a median loan size of about $29,000, compared to the SBA's total average of $113,000. More than 80% of recipients have five employees or fewer, and many are so small that they don't have established relationships with banks.

On Tuesday, Kabbage launched a streamlined PPP application for Uber drivers and delivery people using Uber to make it easier for them to apply for federal-relief funding."This has been fintech's shining moment," said Frohwein. "Ten years ago there's zero chance that most businesses we serve would've gotten funding. The banks would've only worked with much larger small businesses out there.", revealed Tuesday.

The gratitude we've received from customers we helped is kind of overwhelming. We think a large number will work with us on a go-forward basis.Frohwein has difficulty looking far into the future at this point because the economy is in such a vulnerable state.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

3 steps I'm taking to save to buy a house during the pandemic - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. ProTip: Look for properties in hotspots to get the best deals. 👎🏿
Source: BusinessInsider - 🏆 729. / 51 Read more »