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PayPal, Intuit and Square got approved to take part in the coronavirus relief program and offer loans to small businesses. Meanwhile, PayPal, and Square stocks closed in the green on April 13, 0.13% and 0.35% up correspondingly. Intuit shares slightly tanked.
Earlier, the Federal Reserve announced a new $2.3 trillion program to help the U.S. economy recover. Within the program, banks are participating in the initiative by expanding lending to small businesses through the Paycheck Protection Program and the Main Street Lending Program. Fintech companies have also stated their willingness to take part in the coronavirus relief program. Among those approved for offering loans are PayPal, Intuit and Square.
Amid the news, PayPal, and Square stocks closed in the green on April 13, while Intuit shares slightly tanked.
PayPal Is the First Non-Bank Participant of the Coronavirus Relief Program
PayPal (NASDAQ: PYPL) was the first non-bank organization to receive approval from the U.S. Small Business Administration (SBA) to join the Paycheck Protection Program and offer loans to small businesses.
Dan Schulman, President and CEO at PayPal, said:
“Small businesses have been hit especially hard by the coronavirus crisis. There is an urgent need to help every qualified business access the funding needed to ensure that as many workers as possible keep their benefits and paychecks. This is a race to save jobs in the present and for the future”
“We are eager to deploy our capital and expertise to do our part in helping small businesses survive this challenging period. We are thankful to Congressional leaders for ensuring the CARES Act allowed companies like PayPal to help distribute funds quickly to those businesses that are most impacted.”
Yesterday, PayPal stock closed 0.13% up at $105.98. After hours, PayPal added another 0.73% to trade at $106.75.
Intuit Aid Programs
Intuit joined PayPal, as its QuickBooks Capital used by small businesses throughout the U.S. got the approval of the regulators. Besides, Intuit has launched several new programs in response to the coronavirus crisis. For example, its new Intuit Aid Assist is a free website that allows entrepreneurs to assess how much federal relief they’re eligible for under the Coronavirus Aid, Relief, and Economic Security (CARES) Act of the SBA. Another effort, Stimulus Registration, is a new service that helps consumers register for receiving stimulus checks from the government.
Intuit CEO Sasan Goodarzi commented:
“Many consumers and small businesses are struggling to make ends meet and provide for their families. They are facing a loss of income and a lack of savings to weather the storm. The U.S. government has stepped in with much-needed relief and we’re partnering closely to help. We applied our artificial intelligence and rapid innovation capabilities to help Americans navigate these offerings and get access to the relief they need quickly.”
Intuit Inc (NASDAQ: INTU) stock ended 0.8% down on April 13, at $250.09.
Square Approved by the US Treasury
Square also became the participant of the coronavirus relief program on Monday. The crypto-friendly payments company is not accepting applications yet, but later this week it will start working with Salt Lake City-based Celtic Bank to launch the lending program.
“The PPP is a first-of-its-kind stimulus program, and details are developing daily. The Square Capital team has been busy behind the scenes sorting through the details for you. Right now, we’re working closely with our partners to understand when we’re able to help distribute this money, so we aren’t accepting applications yet.”
In addition, Square’s Cash App announced that users eligible for the coronavirus stimulus will be able to deposit the payments into their Cash App account.
Square Inc (SQ) stock jumped by 0.35% yesterday to close at $59.42.