Kabbage (KServicing), a servicer and subservicer of small business Paycheck Protection Program loans (PPP Loans), voluntarily filed for relief and protections under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.
Kabbage launched a new program called Kabbage Funding that will offer eligible small businesses flexible lines of credit between $1,000 and $150,000 with the backing of American Express.
Since the start of the COVID-19 pandemic, struggling SMEs and SMBs have found it more difficult to find the capital they need to survive. At the same time, alternative lenders like fintechs have had to adapt their plans in order to continue being a reliable source of financing. Such creativity will still be needed in 2021 as more opportunities arise.
American Express entered into an agreement to acquire substantially all of Kabbage, a financial technology company providing cash flow management solutions to small businesses in the U.S.
Reuters reported that U.S. online lenders such as LendingClub, Kabbage and Avant are scrutinizing loan quality as they prepare for an economic downturn.
Online lender Kabbage bolstered its financial leadership team with the appointment of Scott Rosenberg as its chief financial officer. The company also added Laurie Simon Hodrick as an independent director on its board.
As small business owners increasingly shun regular bankers’ hours, Kabbage reported 145,000-plus customers accessed more than 300,000 after-hours loans for a total of more than $1 billion in funding.
Fintech lender Kabbage has extended more than $4 billion to more than 130,000 small businesses since April 2017. Robert Sharpe has joined the company as COO.
Kabbage closed a new $200 million asset-backed revolving credit facility with Credit Suisse. The revolver is supported entirely by fully-automated underwritten assets from Kabbage.