Paychex Partnering with Trio of FinTechs for PPP Loan Assistance
Several weeks ago, President Trump signed the CARES (Coronavirus Aid, Relief, and Economic Security) Act into law. This bill not only authorized direct payments to millions of American families but also included the Small Business Administration’s (SBA) Paycheck Protection Program (PPP) intended to help small businesses and their employees. Famously, the initial $349 billion earmarked for PPP ran out in less than two weeks, with another $310 billion now being put into the program. Meanwhile, during the downtime, payroll company Paychex announced that it would be working with three FinTech lenders to help its clients apply for funds.
Last week, Paychex revealed that it was partnering with Biz2Credit, Fundera, and Lendio to help small businesses through the PPP application process. Even before the new round of funds became available, Paychex users could begin the loan application process by visiting its PPP landing page and selecting which of three lenders they’d like to work with. In each case, business owners will be able to submit their applications online instead of having to head to their local bank. Additionally, making the process even smoother, Paychex users will be able to securely upload a tailored PPP report available on the platform. This report is also available to customers using Paychex subsidiaries including SurePayroll, Oasis, and Advanced Partners.
Commenting on the popularity of PPP, Paychex president and CEO Martin Mucci noted, “The fact that $349 billion in Paycheck Protection Program loans were allocated in just over two weeks speaks to the critical financial needs America’s businesses continue to have as they do everything they can to stay afloat during this unprecedented uncertainty due to COVID-19.” He added, “Like all impacted businesses, our customers are looking to expedite the loan process so that they can cover important expenses like payroll and other operational costs as soon as possible.” Mucci went on to discuss his company’s partnership with the three FinTechs, stating, “Some of our customers have found connecting with an SBA-approved lender to be challenging, which is why we’ve joined forces with Biz2Credit, Fundera, and Lendio to provide them with access to a ready network of approved lenders to get the loan process underway quickly, should new funds become available.”
Considering the speed in which the previous round of PPP funding was exhausted — and the controversy that surrounded some of the recipients — the levels of anticipation and stress surrounding the program this time around seem even higher. Moreover, with few municipalities reopening and another month of rent coming due soon, many small businesses are finding their financial situation further deteriorating. Nevertheless, hopefully the efforts Paychex has made to simplify the application process through their customized report and partnerships with online lenders will help businesses owners obtain the funds they need to keep going.