Today in B2B payments, small businesses express frustration with the PPP loan program, while Cirralto plans new funding for its B2B payments tool. Plus, OnDeck partners with HomeAdvisor, MUFG launches a green deposit solution for corporates and Biden narrows PPP’s focus on the smallest of businesses.
SMBs Seeking PPP Loans Frustrated By Typos, Glitches
The U.S. Paycheck Protection Program (PPP), renewed this year after Congress finally enacted a stimulus package, has been hobbled by a range of problems, The New York Times reported. Martha Theirl, in trying to get a PPP loan for her Massachusetts physical therapy business, spent hours battling three levels of customer-service support at her bank. “It’s been a nightmare,” she said.
Australian B2B Payments Provider Cirralto Limited To Raise $14.3 Million
Australian business-to-business (B2B) payments company Cirralto Limited announced on Monday (Feb. 22) that it garnered “firm commitments” to raise A$18 million (approximately $14.3 million), according to an announcement. The company says it plans to use the infusion for an expedited commercialization roadmap for its products, possible synergistic purchases, commercialization of experimental corporate payments offerings and working capital requirements for the road ahead. Its fundraising comes on the heels of a placement in August 2020 to recapitalize the firm and another in November 2020 to help with the firm’s expansion with different payments providers.
OnDeck Teams With HomeAdvisor On SMB Financing
OnDeck, an Enova International brand, has collaborated with HomeAdvisor to help businesses and tradespeople on the HomeAdvisor platform to access financing, according to a Monday (Feb. 22) announcement. “Through this partnership, HomeAdvisor professionals will have timely access to OnDeck’s suite of small business financing options, allowing them to remain focused on managing their businesses and the projects they’re taking on,” Jim Granat, senior vice president at Enova and co-head of OnDeck, said in the announcement.
MUFG Debuts Green Deposits For B2B Customers
MUFG Union Bank N.A. has announced a new green deposits feature to help corporate and commercial clients invest in environmentally sustainable projects, according to a press release. MUFG will use the program to invest deposits from corporate customers in environmental, social and governance (ESG) projects, such as renewable energy, energy efficiency, green transport, sustainable food, agriculture and forestry, waste management and greenhouse gas reduction, the release stated.
Biden Administration Puts New PPP Focus On Smaller, Minority-Owned Firms
President Biden plans to rework the U.S. Paycheck Protection Program (PPP) so that smaller companies, those in underserved communities and those owned by minorities gain increased access to the program. The widely reported changes will kick off Wednesday (Feb. 24) with a two-week span when the program will only accept applications from those kinds of companies. During that 14-day period, the Small Business Administration (SBA) will only accept applications from businesses with fewer than 20 workers. The goal is to answer criticisms of the program and make sure these companies are not crowded out by larger firms.
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