- The United States Small Business Administration has released the application on April 9th to all the non banks to sign in as lenders for the COVID-19 relief fund.
- Many of the fintech companies have already signed the application and have become a part of the COVID -19 relief fund.
During this difficult time, the whole world is facing the COVID-19 crisis. The governments of all the countries worldwide are collecting funds for the COVID-19 relief plan. The United States Small Business Administration has released an application form extending the lender’s list for non banks to sign in as the lenders under the federal Paycheck Protection Program on April 10.
John Pitts, the head of policy of San Francisco-based finetech company Plaid believes that this development would widen the opportunities in reaching the relief program.
Earlier this month the US government announced a $2 trillion relief package that would be beneficial in supporting the small businesses that have been hit by the COVID-19 pandemic. The treasury secretary Steve Munchin showed the earlier signs that the government would be allowing the other non-traditional financial institutions in the COVID-19 relief fund.
John Pitts said, “One of the biggest advantages that fintechs have over traditional lenders is their ability to be more agile. Fintech lenders are digital-first and can process loans quickly — a matter of hours versus days compared to traditional lenders“
Reportedly, many of the fintech institutions have already signed the application in a matter of a few days. The COVID-19 situation will help the fintech companies to grow as it would be having more visibility and would reach more people. The governments are now understanding the benefits of blockchain technology in-depth. This would prove to be a great time for innovation by the fintech companies to establish their feet in the competitive marketing world.