Fintechs, lenders ease PPP roadblocks

With the second wave of federal stimulus funding solidly underway, fintechs and financial institutions are working with government agencies and the Small Business Association to accelerate payouts to small and midsize businesses (SMBs) and civilians. These initiatives are driving adoption of mobile apps, digital wallets and prepaid products and have increased cooperation among participating financial institutions, according to recent reports.

Ronald Ingram, founder of Echo Payment Systems Inc. (EchoPay), underscored the need to speed payment flows during this time of need. EchoPay's debit card and mobile app, with direct deposit feature, will help tens of millions of unbanked and underbanked Americans, he stated.

Noting that EchoPay Visa debit card and mobile app users can receive stimulus checks by direct deposit without having to visit a bank branch, Ingram said, "Customers are getting paid sooner, faster, and with no monthly fee in the case of most customers utilizing direct deposit. We believe that nobody should be stuck waiting for COVID relief checks."

Mobile app adoption

Ingram pointed out that EchoPay is open to all Americans, with no credit check or account opening fees required. Cards arrive within a week and can be used to make purchases wherever major card brands are accepted, he added. Information on how to receive payroll direct deposits for future payments, future employment and/or future COVID-19 relief payments is also available at echopay.me/.

"We all have friends and neighbors who have lost jobs, are overdue on rent or mortgage payments, and even are struggling to buy food for their family in many instances," Ingram said. "They're checking the mailboxes for a check. This need not be; we have a solution."

Ingram further noted that EchoPay initiated a customer appreciation bonus on April 24, 2020. EchoPay customers with direct deposit will see a $50 gift deposited to their accounts, he stated. The extra cash is intended to "help them fill the tank, buy a meal, or help pay a bill," he said, adding that these are "unprecedented times, and we decided to respond in an unprecedented manner."

Bank co-opetition

Newtek Small Business Finance LLC, a division of Newtek Business Services Corp. and a nationally licensed SBA lender, disclosed April 27, 2020, that the company funded $518.2 million in Paycheck Protection Program (PPP) loans during the first round of of $349 billion in federal PPP funding. NSBF estimates the loans helped approximately 66,000 employees remain employed by NSBF's PPP borrowers.

"We want to thank Stifel Financial Corp. and UBS for working with NSBF by referring clients and helping finance America's small businesses, and we appreciate the essential role the SBA plays in supporting the small- and medium-sized business market," said Barry Sloane, NSBF chairman, president and CEO. "We are thrilled to presently estimate that we could provide funds to businesses to maintain or rehire an estimated 130,000 hardworking Americans across the U.S."

Sloane estimated that NSBF has an additional $24.9 million in PPP loans with SBA E-Tran (loan) numbers that are expected to fund this week, which would bring the company's total PPP funding to $543.1 million from the first government allocation of PPP funding. NSBF has funded 90 to 95 percent of PPP loans it has processed, according to electronic transaction data sets provided to NSBF by the SBA.

Whether you want to upgrade your POS offerings, find a payment gateway partner, bone up on fintech regs or PCI requirements, find an upcoming trade show, read about faster payments, or discover the latest innovations in merchant acquiring, The Green Sheet is the resource for you. Since 1983, we've helped empower and connect payments professionals, starting with the merchant level salespeople who bring tailored payment acceptance and digital commerce tools, along with a host of other business services to merchants across the globe. The Green Sheet Inc. is also a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals.

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