Darrell Esch, VP and GM, SMB Lending, PayPal

We continue to celebrate National Small Business Week with some big numbers and news for small businesses. In the first 18 months since we first began empowering small businesses in need of capital, PayPal Working Capital has funded an astounding half a billion dollars ($500M) in business loans and we’re not stopping there. Giving small business owners even more access to capital, we are now increasing the maximum PayPal Working Capital loan size to up to 15 percent of a merchant’s annual PayPal processing volume, or up to $85,000 in the U.S. For merchants in Australia and the UK the maximum loan size will also increase to $85,000 AUD and £50,000 GBP respectively.

There are more than 23 million small businesses in the United States that are underserved by traditional banks and still find it challenging to access capital. PayPal was founded with small businesses at our core and we are dedicated to helping this community continue to grow. The fact that more than 40,000 businesses globally have now benefitted from PayPal Working Capital, and that PayPal Working Capital is issuing $2 million per day in the U.S. alone, is proof that small businesses are still in need of funding to increase sales volume and grow their business.

Unlike traditional banks and credit cards, PayPal Working Capital loans are funded and dispersed into a merchant’s PayPal account within minutes. While approximately half of businesses leverage the loan for inventory, other uses include new product lines, new employees, website improvements, marketing, and managing cash flow.

Approximately 90 percent of borrowers who pay off a PayPal Working Capital loan reapply for a subsequent loan, like Jeff Caruso of Crisloid, maker of handcrafted classic board games. Jeff has used five PayPal Working Capital loans to help increase inventory and grow his business during critical times like the holidays.

NSBW Webinar Today with the SBA

PayPal is a partner for the small business community, and this increase in loan size is another way we are helping our small business customers to grow. Tune in to our National Small Business Week Webinar with the Small Business Association this afternoon at 2:30 p.m. ET to hear Dan Leberman, Vice President and General Manager of PayPal's North American Online Small & Medium Business unit, discuss how payments can be a trigger for small business growth and also talk more about how small businesses like Crisloid are benefitting from PayPal Working Capital.