Today in B2B payments, some small businesses received less than $99 in Paycheck Protection Program (PPP) loans, and U.S. bank profits are expected to sink. Plus, Pilot Company collaborates on fleet factoring, Revolution Payments launches Level III commercial card processing and Porter Capital launches new PPP funding tools.
While the Paycheck Protection Program (PPP) was supposed to be a lifeline for struggling small and medium-sized businesses (SMBs) during the pandemic, some SMBs that received loans less than $99 didn’t find much relief, The New York Times reported. There were roughly 300 businesses out of the over 5 million companies receiving loans that got $99 or less, according to the newspaper. “Judith Less, who runs a thrift shop in New Jersey, got $27,” the paper reported. “Nikki Smith, a baker and caterer in Oregon, collected $96. A.J. Burton, the founder of a record label in Arkansas, got $78. And Susana Dommar, a chiropractor in Texas, received a loan for just $1.”
To help trucking firms expand their businesses, Pilot Company and RTS Financial (RTS) have teamed up for a fuel and factoring partnership. The firms will work in tandem to offer tailored fleet offerings, according to a Monday (Jan. 11) announcement. Dedicated Pilot Company and RTS personnel will work with fleets to offer funding, fuel and key services. Fleets of different sizes will have the ability to simplify their business with Pilot Company’s cross-network collection of fuel discounts, credit, truck repair and loyalty perks with RTS’ advance rates and same-day funding offerings, according to the announcement.
Revolution Payments has unveiled a Level III credit card processing offering for those who use Salesforce, according to a Monday (Jan. 11) announcement. The offering eases payment processing and alleviates the higher interchange fees for merchants that are applied without intervention to credit cards from other companies or the public sector, the announcement stated. Retailers that use the solution are signed up for the Revolution Payments complimentary “commercial card interchange optimization program,” which reduces the cost of acceptance.
Porter Capital, which works with accounts receivable (AR) financing and asset-based lending solutions, will provide more funding for businesses in need of extra money from their current Paycheck Protection Program (PPP) funds, according to a press release. “With the new COVID-19 stimulus package signing, many small business owners can apply for another round of Paycheck Protection Program loans,” said Senior Vice President National Sales Manager John Cox Miller in the release. “In some cases, businesses will find the PPP loan amount isn’t enough, or they no longer qualify. Obtaining additional loans through traditional banks can lead to a lengthy approval process and may not get approved at the end of the process.”
When the largest banks in the U.S. start reporting fourth-quarter results, it is expected that profits will be down by as much as 40 percent from last year, Reuters reported on Monday (Jan. 11). Analysts are forecasting a 42 percent drop in fourth-quarter profits for Citigroup and a 39 percent decline for Wells Fargo. J.P. Morgan Chase is expected to drop by about 5 percent. All three will post results on Friday (Jan. 15). When earnings reports are filed the following week, Bank of America is anticipated to report a 33 percent profit decline.