PayPal Holdings (PYPL) submitted applications to the Federal Deposit Insurance Corp. and Utah’s Department of Financial Institutions to form a Utah-chartered industrial loan company, in a move to expand its lending to small businesses, the company said on Monday.
The company has already provided access to more than $30B in loans and capital since 2013, it said in a statement.
“Establishing PayPal Bank will strengthen our business and improve our efficiency, enabling us to better support small-business growth and economic opportunities across the U.S.,” PayPal (PYPL) CEO Alex Chriss said in the statement.
The application comes as federal regulators have eased rules to encourage lending and innovation. Last week, five digital asset firms were approved for national bank charters, including Circle Internet Group (CRCL) and Ripple.
In addition to providing small business loans, PayPal Bank expects to offer interest-bearing savings accounts to customers. It’s also seeking direct membership in the U.S. with card networks to complement processing and settlement activities through existing relationships.
Mara McNeill was named to be PayPal Bank’s president. With more than 25 years of financial services experience in banking, commercial lending, and private equity, she served as president and CEO of Toyota Financial Savings Bank before joining PayPal (PYPL).
PayPal (PYPL) stock rose 1.0% in after-hours trading.