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MountainSeed and Kabbage partner to Help SMBs in PPP Funding

By Pavithra R

June 11, 2020

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MountainSeed, a real estate services provider for banks and credit unions has partnered with Kabbage, an automated Paycheck Protection Program (PPP) lender to provide community bank and credit union clients timely access to PPP loans for their small business customers in non-urban areas.

The complications and confusions in the PPP application process have resulted in many American small businesses and banks overlooking and not prioritizing the funding relief to help them through the COVID-19 pandemic. BY partnering with Kabbage, MountainSeed has positioned itself as a resource to fill the gap for more than 135 of the company’s community bank and credit union clients.

“Our partnership with Kabbage is an example of how powerful fintech collaborations can result in a meaningful, positive impact for underserved U.S. businesses. We owe our entire business to the invaluable partnerships we have with community banks and credit unions. When we saw we could help them with the PPP through a partnership with Kabbage, we jumped at the chance. While the PPP process was a rocky road for all involved, we are thrilled that many of our clients are now able to serve more businesses in their communities. That is truly a win-win for everyone, but most importantly for the small businesses that needed these funds,” said MountainSeed CEO Carl Streck.

Kabbage has used its automated lending platform to successfully process and fund $800 million for nearly 20,000 small businesses on behalf of banks and credit unions. At present, 80 percent of the loans that have resulted from the partnership with MountainSeed have been made in non-urban areas, with an average loan size of $40,000. That amounts to over 115,000 paychecks for employees in financially fragile communities and industries.

“Thanks to MountainSeed, we’re proud to have formed over 135 partnerships with local banks in a matter of days, which under normal circumstances would typically demand months or years of planning. I’m honored that so many credit unions and community banks placed their trust in us, and it is because of their leadership and quick action that hundreds of millions of dollars are flowing back to the businesses for which this program was designed to serve,” said Kabbage CEO Rob Frohwein.

Founded in 2009, Atlanta based Kabbage Empowers Small Business owners to generate critical CashFlow. The company recently received SBA approval to fund 110,000 PPP application surpassing $3.5 bn.

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