Plaid, a US-based financial services company, has developed a payroll product that helps lenders speed up the emergency loan approval for small businesses (SMEs).
SMEs looking to survive the coronavirus slowdown are rushing to apply for emergency government loans. But as a part of that process, they need to download their payroll data and share it with their bank, who then needs to verify and process the information and application.
The US government is facilitating at least USD 350 billion in loans to small businesses, as part of the USD 2 trillion coronavirus stimulus bill signed recently. The lending is being done through banks, although many non-bank lenders like Square and PayPal have lobbied to be included.
Large banks complained of a lack of guidance to get systems up and running in the hours before the deadline. As a result, many said they were prioritising existing customers. Plaid said this payroll product could help banks add newer customers who otherwise might take days to get their payroll paperwork before being approved.
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