KServicing Issues Statement
Dec 01, 2022, 13:40 ET
WILMINGTON, Del., Dec. 1, 2022 /PRNewswire/ -- Kabbage, Inc. d/b/a KServicing ("KServicing" or the "Company"), today issued the following statement:
Kabbage dba KServicing ("Kabbage or KServicing") is proud of the role it played in supporting American businesses during the COVID-19 pandemic, which resulted in almost 300,000 small businesses receiving critical financing to keep their doors open and employees paid. Kabbage's existing online lending platform was able to process the sudden flood of loan applications, in a timely manner, in the midst of a national crisis and in light of ever-changing federal lending rules. Kabbage adhered to the applicable rules and regulations in good faith. Two and half years later, Kabbage remains committed to the borrowers who used our services during that difficult time to access Paycheck Protection Program (PPP) loans.
The Select Subcommittee has played an important role in reviewing COVID-19 government programs and protecting the interests of the American people as it relates to one of the worst pandemics this nation has experienced. Kabbage worked diligently with the Subcommittee to provide timely and transparent information as they engaged in this investigation. Unfortunately, the report does the American people a disservice by parsing bits of information out of context to reach a predetermined conclusion. Looking back on the tumultuous time of the height of the COVID-19 pandemic, the fintech community played a vital role in helping bolster the US small business community and we are proud to have been part of that endeavor.
Founded in 2010 and headquartered in Atlanta, Georgia, Legacy Kabbage (a predecessor of KServicing) was one of the leading fintech providers of working capital to small businesses for over a decade. Legacy Kabbage began as a proprietary online lending platform for small businesses, providing loan services to over 250,000 American small businesses, many of which were businesses that struggled to receive adequate funding through traditional banking institutions. Legacy Kabbage offered a variety of services to small business owners, including providing small business loans, access to flexible lines of credit, business checking accounts, online bill payment methods, cash flow visualization tools, and e-gift certificates through its website and software application. From 2020-2021, the Company provided and facilitated necessary funding to small business owners through PPP loans during the COVID-19 pandemic. The Company's existing technology infrastructure spearheaded its PPP work, which led to a total of $7 billion in loans being originated by the Company.
The origination and servicing of PPP Loans and small business loans to eligible borrowers was critical during a time of unprecedented health and economic uncertainty brought about by the COVID-19 pandemic. On August 16, 2020, much of the Company's business was sold to American Express Travel Related Services Company, Inc. pursuant to an executed Agreement and Plan of Merger. As a result of the merger, KServicing now operates in a limited capacity as (i) a servicer and subservicer of PPP Loans, (ii) a software services provider for lenders of PPP Loans, and (iii) a servicer of a minor portfolio of non-PPP small business loans.
To learn more about us, please visit www.kservicing.com. Kabbage is a trademark of American Express used under license; Kabbage, Inc. d/b/a KServicing is not affiliated with American Express.
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