At PayPal, serving small businesses is at the heart of our mission. We see it as both a responsibility and
a privilege to empower small businesses by providing financial services and tools to help businesses
grow and thrive.
On September 16th, Darrell Esch, PayPal’s Vice President and General Manager of Business Financing
Solutions, and Lisa Brooks, PayPal Working Capital Merchant & PayPal Small Business Advocate, spoke
on a panel at the Congressional Black Caucus Foundation’s Annual Legislative Conference titled “The
Wealth Gap: Innovative Small Business Loans from FinTech.”
Hosted by Congressman Gregory Meeks (D-NY), the panel focused on innovative small business
financing solutions, like PayPal Working Capital, positively impacting women and minority-owned
businesses. The panel was moderated by Gerron Levi, Director of Policy & Government Affairs at the
National Community Reinvestment Coalition (NCRC), and included representatives from Kabbage,
OnDeck, and Fundation.
During the event, Representative Meeks highlighted that the wealth gap between African American and
white households remains the largest it has been in at least three decades. When accessing capital,
small businesses often face higher interest rates, shorter maturity, and more stringent collateral
requirements.
PayPal Working Capital was launched in 2013 to address gaps like this in the market, offering funding in
minutes with flexible repayment terms and one affordable fixed fee. Darrell highlighted that 25% of
PayPal Working Capital loans are disbursed to the 3% of counties where 10 or more banks have closed
since the 2008 financial crisis. Unlike traditional sources, PayPal Working Capital eligibility is based on
PayPal history and processing volume, not a business or personal credit score.
This last point is especially crucial to PayPal Working Capital recipient Lisa Brooks who then shared her
story to the audience gathered at the event. Lisa, owner and founder of Heart & Soul Catering in
Charlotte, NC, founded her business in 2010 after being laid off from her corporate job where she
worked for more than 15 years. Not one to be kept down, Lisa decided to use this life change as a
catalyst to follow her passion. She enrolled in culinary school, began cooking for local families and
eventually launched her business. But when it came time to seek financing to grow her business, a
personal bankruptcy from 2008 meant traditional sources of funding were out of the question.
That is where PayPal Working Capital came in. Lisa spoke of how the product is quick, easy and
affordable. “I feel like PayPal is really investing in my business instead of just providing a loan,” she says.
Lisa has used PayPal Working Capital to hire twelve people, invest in new tools for her business, and
launch marketing campaigns.
At PayPal we believe in the power of our business to drive meaningful, lasting social impact. The panel
was a fantastic opportunity to share the benefits of PayPal Working Capital and participate in a healthy
discussion about what alternative lending options provide for women and minority-owned businesses.