After pausing new lending in March Kabbage pivoted to focus on the Paycheck Protection Program and in doing so has become one of the largest lenders in the country; the company has processed more than 130,000 loans, mostly to businesses with five or fewer employees; their average loan size is $29,000 compared with the program’s average of $113,000; more than 90% of the applications they processed for self-employed businesses were automated and many applicants received SBA approval the same day; earlier this week the company launched a PPP application just for Uber drivers to make the process easier for them; CEO Rob Frohwein said, “The gratitude we’ve received from customers we helped is kind of overwhelming. We think a large number will work with us on a go-forward basis.” CNBC
Peter Renton is the chairman and co-founder of LendIt Fintech, the world’s first and largest digital media and events company focused on fintech. Peter has been writing about fintech since 2010 and he is the author and creator of the Fintech One-on-One Podcast, the first and longest-running fintech interview series. Peter has been interviewed by the Wall Street Journal, Bloomberg, The New York Times, CNBC, CNN, Fortune, NPR, Fox Business News, the Financial Times, and dozens of other publications.