ATLANTA, July 1, 2020 /PRNewswire-PRWeb/ -- Kabbage, Inc., a data and technology company providing small business cash-flow solutions, approved a landmark number of applications in the Paycheck Protection Program (PPP), demonstrating the true power, scale and reach of its technology platform. Over the three-month period of the program, Kabbage approved over 209,000 small businesses for $5.8 billion, making it the third-largest PPP lender in the country by application volume. The result is the single-largest PPP lending accomplishment by a FinTech company, outperforming some of America's largest banks to ensure the country's smallest businesses received relief.
"It's been an absolute honor and an undeniably historic feat for a company of our size to help this many small businesses—most of whom were unable to apply elsewhere—in such a short period of time," said Kabbage CEO Rob Frohwein. "The PPP validated the criticality of FinTech. Most of the small businesses we reached would have been ignored had this crisis taken place just 10 years ago. These businesses can only be served in mass by an automated platform that places need in front of privilege and levels the playing field that has too long been unequal in our financial system. Millions of small businesses will now turn to FinTech solutions before traditional banks when seeking even the most basic financial services."
Prior to the PPP, Kabbage had never processed a loan for the SBA. In less than two weeks, Kabbage entirely restructured its lending platform and developed new automated systems to ingest, analyze, verify, and approve PPP applications. Its long-term investments in technology and data analysis were the differentiation that allowed it to become a top-three lender in the largest program in the Administration's history. Kabbage accepted applications from any business of eligible size, industry, and structure, and reached companies in all corners of the nation, which was critical to successfully fulfilling Congress's intent of making relief funding available to those who need it most.
To date, Kabbage has provided over $1.9 billion to businesses in low and moderate-income (LMI) areas, representing 255,000 jobs restored in traditionally underserved communities. In total, Kabbage helped maintain an estimated 782,000 jobs for small businesses.
Kabbage's results in the program include:
● 97% of all SBA-approved applicants were new customers to Kabbage.
● 93% of all applicants had 10 or fewer employees; 62% had one employee, and 58% were self-employed.
● Kabbage's total average loan size was $28,100 and 50% of all loans were under $13,500.
● Over 75% of all applications were processed without human intervention or manual review.
● The median time from applying to approval was 4 hours.
● Kabbage served businesses in over 1,000 different industries.
● $150 million was delivered to America's farmers, restoring an estimated 27,000 jobs.
● Kabbage processed PPP loan applications on behalf of 135 community banks, 80% of which served small businesses in non-urban regions.
In the last week of the program, Kabbage saw a surge of demand, approving over 46,000 applications for $1.1 billion. There continues to be an appetite to apply among small businesses as more than 25 million have yet to receive funding. Kabbage will continue processing PPP applications if Congress approves the 5-week extension.
Kabbage issued PPP loans as an SBA-authorized lender and in partnership with Customers Bancorp (Pa.) and Cross River Bank (N.J.) to serve small businesses in all 50 U.S. states and territories. Of the loans processed, 55 percent were directly funded through Kabbage, with 23 percent funded through Customers Bancorp, and 22 percent funded through Cross River Bank. A complete report of Kabbage's PPP results is available here.
About Kabbage
Kabbage, Inc., headquartered in Atlanta, is a data and technology company providing
small business cash flow solutions. Its suite of products includes Kabbage PaymentsTM, helping small businesses get paid and access the money they earn faster; and Kabbage InsightsTM, calculating small businesses' real-time cash flow. In response to COVID-19, the company launched http://www.helpsmallbusiness.com to help small businesses generate more revenue by selling online gift certificates. Kabbage is funded and backed by leading investors, including the SoftBank Vision Fund, BlueRun Ventures, Mohr Davidow Ventures, and others. Kabbage Payments, LLC, a subsidiary of Kabbage, Inc., is a registered Payment Service Provider/Payment Facilitator sponsored by Fifth ThirdBank, N.A., Cincinnati, OH. For more information, please visit http://www.kabbage.com.
SOURCE Kabbage
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