Small businesses that received Paycheck Protection Program loans from community development financial institutions graded those lenders well for customer satisfaction in a new Federal Reserve survey of 15,000 businesses, American Banker reports.
Among the small businesses that rated their PPP loan experience as “satisfied:”
- 70 percent applied through a CDFI;
- 61 percent applied through a small bank;
- 48 percent worked with a credit union;
- 41 percent obtained their loan through a large bank; and
- Only 18 percent of applicants who used a fintech company for their loan were satisfied.
The survey also found that fintech companies were less likely to approve loan applications, or they approved smaller amounts than what the businesses requested. Less than half (47 percent) of those who applied for a PPP loan through an online lender got the full amount they requested.