In today’s top news, the Federal Reserve and Treasury Department are collaborating to develop a new facility to help small- to medium-sized businesses (SMBs) stay afloat during the coronavirus, and the Paycheck Protection Program (PPP) is experiencing setbacks due to technical issues and demand. Plus, regulators in Europe ruled that Mastercard’s plans to acquire part of Nets violate antitrust protections.
The Federal Reserve is collaborating with the Treasury Department to develop a new facility to help SMBs stay afloat as the coronavirus pandemic continues. The new facility — which will be announced by the Fed this week — will enable lenders to extend additional loans backed by the Small Business Administration (SBA).
The PPP introduced April 3 is experiencing more setbacks as the SBA works to solve computer system problems. Banks have been struggling to meet the demands of businesses seeking the SBA-backed loans. Myriad problems — including technical issues — have been ongoing since the program launched.
Based on information from six nations, including the U.K., regulators in Europe said on Monday (April 6) that Mastercard’s plans to purchase a portion of Nets presents a sizable risk to competition on the continent.
Safaricom, Kenya’s telecommunications giant, and the South African mobile communications company Vodacom have completed the acquisition of the M-PESA brand, along with its product development and support services, from Vodafone Group PLC through a joint venture.
Social distancing has changed eCommerce from a “want to have” to a “must have” for businesses, yet retailers could struggle to create convenient payment and refund experiences for their apps and websites, said Abdul Raof Latiff, head of DBS Bank’s digital institutional banking group. In this month’s B2B API Tracker®, Latiff explains how banks can provide a timely assist via application programming interfaces (APIs) that integrate payments into those eCommerce platforms.
Not all businesses can produce masks or ventilators, but FinTechs are in a unique position to help extend relief to coronavirus-impacted SMBs. Bottomline Technologies CEO Rob Eberle told Karen Webster how his company came to launch a solution designed to ease the PPP loan-application burden and how B2B FinTechs can help more broadly as massive disruptions force firms to prioritize payments and finance digitization.
The NFIB Small Business Optimism Index slid 8.1 points in March, coming in at 96.4, the largest decline in the history of the survey. Firms reported that profits slipped during the latest survey, and 32 percent said that weakening was due to shakier sales, 26 percent on seasonal changes. Another 9 percent cited pricing changes.