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Lendio’s Role in Keeping Small Businesses Afloat During COVID

We generally think of healthcare workers, grocery store employees, delivery drivers, and other essential workers as the main heroes of the coronavirus public health crisis. However, there’s one company worth mentioning that has risen to “hero” status for small businesses across the U.S.

That company, Lendio, has been serving small businesses since it launched in 2011 by matching small businesses in need of funding with lenders. After the coronavirus hit and the U.S. Small Business Administration passed the CARES Act and Paycheck Protection Program (PPP), Lendio became a critical resource for merchants across the nation.

After seeing the mass confusion around different types of relief programs and their application requirements, Lendio quickly created a COVID-19 Relief hub on its website to educate business owners, help them apply for funding, and match them with one of its 300 lender partners.

Since April, Lendio has facilitated $8 billion in PPP loan approvals. The company has also helped more than 100,000 small businesses receive approval for PPP loans of an average size of $73,000. This is a massive increase in production for the Utah-based company which, prior to PPP, had facilitated $2 billion in loan approvals since it began operations nine years ago.

The 100,000+ PPP applications Lendio facilitated offered the company a large amount of data (and insight) into the applicants. The company published an analysis of that data last week. Here are some of the findings:

  • States in the Pacific region received 25% of PPP approvals, while those in the Mountain region received only 9%.
  • States in the Northeast and Pacific regions saw the highest average loan size ($80,518 and $79,507, respectively). The average loan size is lowest in the South Atlantic ($64,064).
  • Women business owners made up 32% of applicants.
  • Businesses in urban areas received 30% of the loans applied for, while suburban businesses received 28%, and rural received 39%.

As for what business owners can expect next, just as with the virus itself, the battle has not been won. “I think the next big market mover is going to be the realization that the PPP program actually had an enormous impact,” Sanders Morris Harris CEO George Ball in an interview with Yahoo Finance. “It worked. It kept the patient alive. But the half-life of the forgivable loans to small businesses comes up pretty soon, comes up mid-July to August.”


Photo by mauro paillex on Unsplash