Fintech Lenders Hope PPP Refresh Will Cater to Small Companies

The average loan size for PPP loans to date is $240,000 which fintech lenders have argues is catering to bigger companies; while Square did not disclose the amount of applications they received the average loan size for their merchants is $7,000; “We really do serve the most needy, the smallest, and a population that has otherwise been overlooked or excluded from the financial system,” Square Capital Lead Jackie Reses said to American Banker. “I hope they make sure they leave room for the little guys: the sole proprietor, the plumber, the electrician, the hairstylist, the massage therapist, people who are the lifeblood of the American economy.”; Kabbage’s COO Kathryn Petralia said 90 percent of small businesses have less than 20 employees and 80 percent have less than 10 employees; if smaller companies become a bigger focus of new funding the legislation could serve a lot more companies than the first tranche. American Banker

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