Kabbage stopped new PPP applications just ahead of the program's deadline - Business Insider

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Kabbage has been looking for a buyer, highlighting the difficulties for alt lenders to continue operating past the PPP deadline

The PPP has enabled Kabbage to reach new users with a viable alternative to traditional lenders.

It drew in thousands of new customers. Launched in 2009, around 225,000 SMBs used Kabbage's platform prior to the pandemic. But between April and June, it almost doubled its users and approved more than applications from new SMBs and processed $5.8 billion worth of loans under the PPP. For context, Kabbage lent out $2.8 billion in the whole of 2019.

Its online platform offered a faster application process than traditional banks. Many SMBs have been dissatisfied with their banks' PPP processes due in part to poor communication and long wait times (

 

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