Credibly is a fintech lender to small businesses.

Credibly announced Monday that it had facilitated $500 million in relief funding to SMBs after receiving approval from the Small Business Administration (SBA) for PPP lending.

The fintech moved fast when the government released the second tranche of PPP forgivable loans of $310 billion on Monday at 10:30 am EST. It processed more than 10,000 PPP applications aggregating over $500 million in requested funding. (Benzinga)

About the PPP

The first tranche of $349 billion of PPP funding under the CARES Act ran dry within a couple of weeks. The PPP encourages small and medium businesses (SMBs) to keep employees on their payrolls. It provides working capital support at low rates of interest and loan forgiveness on eligible expenses.

The criteria for PPP loans requirements are:

• The applicant’s business (or nonprofit) was in operation as of February 15, 2020.
• The applicant is an independent contractor or sole proprietor. Alternatively, their business/organization has either employees or independent contractors for whom they have associated payroll costs.

According to the amended CARES Act, out of the additional amount of $310 billion, $60 billion is to refill the EIDL program. The balance of  $250 billion is for PPP loans.

Credibly’s opportunity

The Credibly platform assists PPP applicants by verifying the completeness of their application, checking eligibility, and computing payroll expenses.

“We’re incredibly excited about the opportunity to help facilitate SBA loans to small businesses throughout the United States. Most small businesses only have about 8 weeks of cash reserves on-hand and the COVID-19 pandemic has been disrupting business ecosystems for months. The ability to offer SMBs access to the capital support they need at this time is critical,” said Ryan Rosett, Founder, and Co-CEO.

Credibly counts 19,000 SMBs across the U.S. as its customers. It has already provided funding in excess of $1 billion to them.

“We are noticing a massive uptick in applications from individuals who were not serviced by their own bank,” said Rosett to Benzinga. “As a fintech small business lender, Credibly is uniquely positioned on the frontline of assisting small businesses.”

Related Story:   FinTech: Fintechs May Not Get a Large Enough Chunk of PPP Disbursements