ILPA Applauds Senate Confirmation of Isabel Guzman as SBA Administrator
Online lenders share goal of helping underserved businesses access PPP
WASHINGTON – March 16, 2021 – The Innovative Lending Platform Association (ILPA) strongly supports the Senate confirmation of Isabel Guzman as the next Administrator of the U.S. Small Business Administration (SBA). “ILPA congratulates Ms. Guzman on her confirmation and stands ready to work with her and the SBA team to help small businesses recover and grow in the coming year,” said ILPA CEO Scott Stewart.
“ILPA represents the majority of the largest and most recognizable brands in the online small business lending industry, and we are proud of the prominent role our members have played in helping the underserved and minority communities access the Paycheck Protection Program (PPP).”
According to SBA data, financial technology (Fintech) firms have assisted the underserved, smallest, and businesses in Low-Moderate Income (LMI) areas with a larger proportion of their PPP loans than traditional financial institutions.
- Fintech represents the largest share of loans to small businesses in LMI areas in the program (35.66% compared to the program average of 25.2%).
- Fintech represents the largest percentage of loans under $150,000 for lender type >1% of program total (73.18% compared to the program average of 41.3%).
- Fintech has served more than double the small businesses than Community Development Financial Institutions (CDFI), and more than Credit Unions, Farm Credit Unions, BIDCOs, and SBLCs combined.
Also, recent research by NYU Stern found that, relative to other lenders, fintech lenders made a substantially larger share of their loans to Black- and Hispanic-owned businesses. The NYU research also confirmed the SBA’s data that Fintechs made far more loans than Minority Depository Institutions (MDIs), nonprofits, and CDFIs, institutions that traditionally served underserved communities.
Recent enhancements to the PPP authored by the Biden-Harris Administration allow the smallest of small businesses – especially those in underserved and minority communities – to access relief programs. However, PPP is currently set to expire on March 31, 2021, if Congress does not take further action.
“Many small businesses still need assistance, and now is not the time to let PPP lapse. ILPA urges Congress to pass bipartisan legislation sponsored by House Small Business Committee Chairwoman Nydia Velazquez (D-NY) and Ranking Member Blaine Blaine Luetkemeyer (RMO), Senate Small Business Committee Chairman Ben Cardin (D-MD), and Senator Susan Collins (R-ME), which would extend PPP for three months,” said Scott Stewart.
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