PayPal submits applications to establish industrial bank

PayPal (PYPL) Holdings announced it has submitted applications to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation to establish PayPal Bank, a proposed Utah-chartered industrial loan company. Since 2013, PayPal has provided access to over $30 billion in loans and working capital to more than 420,000 business accounts worldwide, filling a critical gap for small businesses seeking capital to expand, buy inventory, or invest in the people and tools needed to thrive. As proposed, PayPal Bank would enable PayPal to provide business lending solutions more efficiently to small businesses in the U.S., while reducing reliance on third parties and strengthening PayPal’s business. In addition to providing small business lending solutions, PayPal Bank expects to offer interest-bearing savings accounts to customers. PayPal Bank would also seek direct membership in the U.S. with card networks to complement processing and settlement activities through existing banking relationships.