Much of the attention of the Paycheck Protection Program has been on the automation of the approval process; this was certainly an important step as companies such as Kabbage dealt with hundreds of thousands of loan applications; what has been overlooked is the disbursement of these loans; Kabbage supports a number of different digital disbursement methods including ACH, debit card push payments, wire transfers and disbursements to PayPal-supported online wallets but all the PPP loans were disbursed via ACH; Kabbage president and co-founder, Kathryn Petralia explains, “Because we are serving customers with lots of different accounts at lots of different banks, ACH made the most sense for us. Plus, it allowed us to mitigate fraud risk because we could verify the [SMBs’] ownership of that account.” PYMNTS.
