All of the leading online lenders are struggling as the economic crisis continues to get worse; many have cut originations dramatically and laid off workers; while the consumer is holding up thanks to the government stimulus the same cannot be said for small business lenders; Square and Kabbage have stopped lending completely and OnDeck has paused most lending as well; but most online small business lenders are participating in the Paycheck Protection Program; the industry is likely headed for consolidation with Nigel Morris, the managing partner of QED Investors saying, “Banks are largely well capitalized and in very good shape to ride this out, it’s a time to consider M&A, to buy assets and capability [they] don’t have. The fintech community is more in the mood to listen.” American Banker
