Global financial service platform Kabbage announced on Tuesday it has expanded its Paycheck Protection Program (PPP) with a customized application for drivers and delivery people who use Uber in the U.S.
The Paycheck Protection Program is part of the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act signed on March 27, 2020, aimed at getting small business owners back on their feet and millions of Americans back to work following the COVID-19 pandemic. The U.S. Senate recently passed $484 billion in new pandemic relief funds to provide additional funding to the PPP small business aid program, pay for coronavirus testing, and help hospitals deluged by sick patients during the COVID-19 pandemic. The approved package will provide $320 billion to allow the PPP to take new applicants for the program, which provides forgivable loans to small businesses that keep employees on the payroll for eight weeks.
Kabbage revealed now with over 130,000 SBA-approved PPP loans for more than $3.8 billion, its average loan size is $29,000, compared to the SBA’s total average of $113,000. Through this the new PPP application, Kabbage stated it will provide a greater number of diverse, independent contractors access to funds appropriated to assist them through this COVID-19 pandemic. Speaking about the app, Kabbage CEO, Rob Frohwein, stated:
“With more than $100 billion left in the PPP, there is a meaningful opportunity for the self-employed to still apply and receive funding. With Uber, we aim to provide hundreds of thousands of more independent contractors access to federal funding.”
Cammie Jenson, U.S. Driver Experience for Uber, then added:
“Getting access to PPP funding has been difficult during this crisis for many, including people who drive and deliver using Uber and are looking for extra support. We’re excited that Kabbage stepped up to design a process to streamline and enhance the application process.”
Kabbage recently announced more than 110,000 U.S. small businesses have been approved to receive over $3.5 billion in Paycheck Protection Program (PPP) funding through its online lending platform.