Lehi, Utah, April 17, 2020 (GLOBE NEWSWIRE) -- Lendio, the nation’s leading marketplace for small business loans, today announced it has facilitated Paycheck Protection Program loans for more than 70,000 small businesses across the U.S. PPP applications approved through Lendio’s online marketplace and bank partnerships total $5.7 billion.
The Paycheck Protection Program is part of the $2 trillion CARES Act signed on March 27, 2020, aimed at getting small business owners back on their feet and millions of Americans back to work. Lendio launched its Paycheck Protection Program loan application for small business owners on April 3. At the same time, hundreds of financial institutions across the country partnered with Lendio to harness its streamlined digital application to facilitate COVID-19 relief funds for their small business clients.
Small business owners applied for PPP loans at financial institutions nationwide at an unprecedented rate. With only $349 billion in government funds set aside for the nation’s 30 million small businesses, the SBA announced on April 16 that the funds had been exhausted.
“We knew that time was of the essence for every small business in America,” said Brock Blake, CEO and co-founder of Lendio. “The entire Lendio team worked tirelessly to ensure that our applicants met the SBA requirements and guidelines for fully-completed applications, and we submitted every completed application to our funding lenders. We processed more applications in two weeks than we have in the last 12 months combined. Unfortunately, this first round of relief funds was simply not enough. We are devastated for the thousands of Lendio customers that didn’t receive a confirmation before the program hit its cap—we are already preparing their applications to make sure they are ready to be approved if Congress increases the fund size.”
Lendio is not a direct lender but facilitates PPP loans as an agent through its trusted network of approved lenders which include banks, credit unions and non-bank SBA lenders. Many of the lenders on Lendio’s marketplace platform are fintech lenders. However, U.S. Treasury did not approve any fintech lenders to fund PPP loans until April 10, and most reported challenges getting set up with the SBA’s loan portal to submit applications. If another round of relief funding is approved by Congress, Lendio expects to add approximately 50 new lenders that are approved to participate in the program. Lenders leverage Lendio’s customer acquisition prowess and online application technology to significantly increase their ability to process high volumes of PPP loans.
“Lendio’s average PPP loan size is just over $110,000. The national average is more than double that at just under $240,000,” continued Blake. “While big banks were only servicing their own customers, or not participating in the program at all, many business owners were left with few options. From the first day of the PPP launch, Lendio has focused on business owners in underserved segments—the smallest businesses in the country and those without a bank relationship and nowhere else to turn. With only 1.6 million of the 30 million U.S. small businesses approved, we are heartbroken for the applicants that weren’t approved by the SBA before the funds ran dry.”
Lendio is working with government officials and industry leaders to put pressure on Congress and asks its small business clients, partners and peers to join in signing an online petition asking Congress to immediately increase the PPP fund size to $850B.
Updated to reflect the most current numbers for total loan volume processed and loan applications approved at the end of business hours on April 17, 2020.
About Lendio
Lendio is a free online marketplace that leverages machine learning to help business owners find the right small business loans within minutes. With a network of over 75 lenders offering multiple loan products and over 100,000 small business loans funded, Lendio’s marketplace is the largest in the country and the center of small business lending. Based in the Silicon Slopes of Lehi, Utah, Lendio was recently recognized by Glassdoor as one of the Top 50 Workplaces and has been certified for four years running as a great workplace by the independent analysts at Great Place to Work®. In addition, Lendio ranks on Fortune’s Best Workplaces in Financial Services & Insurance and Inc.’s Best Workplaces. For every new loan facilitated on Lendio’s marketplace platform, Lendio Gives, an employee contribution and employer matching program, provides a microloan to a low-income entrepreneur around the world through Kiva.org. More information about Lendio is available at www.lendio.com. Information about Lendio franchising opportunities can be found at www.lendiofranchise.com.