PayPal Fills the Credit Gap for Businesses as Banks Fold

PayPal (PYPL) is a critical source of credit for American businesses left behind by folding banks. PayPal’s CEO, Dan Schulman, disclosed during a recent interview that 25% of the company’s working capital loans are to small businesses in US counties where at least ten banks have closed their branches. The strong demand for PayPal loans in counties that have been hit hard by the outflow of traditional lenders shows that PayPal is providing a credit lifeline for American small businesses.