UPDATE: The PPP loan application period ended May 31, 2021. Learn about financing options available for small businesses today at Lendio.com Over the last four months, small business owners across the country have flocked to lenders of all types looking for economic relief in the form of Paycheck Protection Program (PPP) loans. From large national banks to fintech lenders to local community banks and credit unions, lenders of all types and sizes joined forces with Lendio to distribute relief funds as quickly and efficiently as possible. The PPP, as part of the CARES Act, was aimed at keeping employees at work and small businesses operational. Qualified business owners could receive up to 2.5x their monthly payroll, much of which can be forgiven if used on the approved expenses. The loan approvals facilitated through Lendio’s marketplace have preserved an estimated 1.1 million jobs; this effort that would not have been possible without the array of lending partners that converged on Lendio’s marketplace platform during this time. In the first month of the PPP, Lendio onboarded hundreds of lenders to help facilitate what would eventually amount to $8 billion in loan approvals for over 100,000 businesses. These financial institutions come from dozens of states, represent multiple lender types, and vary in their size and mission. The following data reflects PPP loan approvals facilitated through Lendio’s platform from April through August 2020. Lender Type From the initial announcement of the PPP, Congress and the SBA made it clear they intended to allow fintechs and non-bank lenders to facilitate PPP loans. However, the approval process for those lenders took some time. As such, not each lender type participated in distributing the first tranche of funds. Banks accounted for 44% of PPP loans approved through Lendio’s platform, spread nearly equally between the first and second rounds of PPP. Fintech lenders, which received SBA approval for the second round, secured only 6% of total loan volume on the Lendio platform; however, this represents 16% of all businesses receiving approvals. Banks and non-bank lenders facilitated the most loan approvals on the Lendio platform. Fintech lenders also delivered on serving the smallest of small businesses and sole proprietors, with an average loan size of just $28,584. The intended purpose of the PPP was to preserve jobs as the country reacted to the COVID-19 pandemic. The various lender types worked with different segments of the small business community to preserve operations with a variety of workforce sizes. Individual Lenders Delivering relief funds to 100,000 businesses required a combined effort from multiple lending partners. Banks were well-suited to facilitate PPP funds for larger businesses and funded the largest loans on average. Credit unions, non-bank lenders, and fintech lenders performed a specific service in facilitating the smallest loans on average to the smallest businesses and solopreneurs. The PPP, while not a perfect solution, has helped keep millions of Americans at work as the nation grapples with the pandemic and resulting economic crisis. Facilitating PPP loans is not the work of a single agency or institution, but the product of many dedicated people coming together to save small business. As the nation’s leading small business loan marketplace, Lendio is committed to providing solutions that support small businesses along the path to recovery and future growth.