Market Lending News Roundup – May 2, 2020

During the week, I share the latest lending and fintech market news on Twitter as it happens. Then, every Saturday, I take the most interesting news and blog posts from the past week and share them here.

Small Business Relief Program Still Halted by Politico – I’ve seen many ideas about how the PPP loan program should be improved. But this piece by Aaron Klein in Politico is one of the best. I would just add allowing fintech lenders direct access to Fed capital.

How the big banks decided the future of America’s small businesses: The inside story of how $349 billion in government cash was doled out in just 12 days, leaving thousands of entrepreneurs with no relief by Business Insider – Good in-depth analysis of what really happened in the first round of the PPP.

Mark Cuban’s alternative to PPP: Fed-backed overdraft protection by American Banker – So Mark Cuban continues to come up with creative ideas. Here, he promotes a Fed-backed overdraft protection system as an alternative to PPP.

SoFi Eases PPP Support for Members During COVID-19 by PR Newswire – Even SoFi is getting into PPP support. Their Lantern product will help small business owners apply for loans.

Buy now, pay later, startups are on the rise. But Affirm CEO Max Levin said the industry will see upheaval as the pandemic hits borrowers. by Business Insider – Not all lenders are in trouble today. As many consumer lenders fold with a significantly tighter credit box, Affirm is looking at opportunities for expansion.

Christian Faes, Founder and Chairman of LendInvest, comments on the UK Government’s support for SMEs during the COVID-19 crisis by CrowdFund Insider – Interesting comment from Christian Faes on the UK Government’s response to COVID-19 and how the lending industry is not banks could and should play a greater role.

The Federal Reserve is expanding access to its Paycheck Protection Program Liquidity Facility (PPPLF) to other lenders and expanding the collateral that can be pledged by the Federal Reserve – This week the Fed announced an extension of the PPP liquidity facility. It will now be available to additional lenders as in “all SBA-approved PPP lenders”. About time.

RBS drops Monzo-challenger Bó by Yahoo News – It’s hardly a surprise, but Bó, RBS’ UK consumer digital bank launched less than six months ago, is closing after failing to gain much traction .

OnDeck Slashes Loans as Delinquencies Rise by American Banker – While these are tough times for small businesses, it’s brutal for small business lenders. OnDeck reported earnings this week with DQs reaching 27% in March and 45% in April.

COVID-19 Boosts Digital Adoption, But Still Leaves Millions Behind By Forbes – As digital banking services are in vogue today like never before, Jennifer Tescher reminds us that many are still being left behind. And this crisis only widens the digital divide. The fintech industry needs to take note.

Troy M. Hoffman