PayPal Holdings (NASDAQ:PYPL) announced the Venmo Small Business Grant, which is a program providing financial grants and mentorship to 20 new and existing Venmo Business Profile customers.
Each of the businesses will get $10,000 towards expenses like rent, or helping to digitize and promote their businesses. It’s ultimately not a bad option as according to a U.S. Bank study 82 per cent of failed businesses failed due to cashflow problems.
“The last two years have been tremendously difficult for small businesses in communities across the United States, like your local dog walker, barber and florist. Nearly 200,000 U.S. businesses have been forced to close because of the pandemic. Small businesses are vital to a healthy economy and thriving communities, and through the Venmo Small Business Grant we can provide much-needed funding and support to help them build resilience, grow and succeed,” said Denise Leonhard, vice president of Venmo.
PayPal is one of the top five strongest digital payment platforms presently offering the service. The company uses technology to provide convenience to using financial services, as well as ensure they’re secure and affordable. The company boasts over 429 million consumers in more than 200 markets.
Venmo business profiles launched in February 2021 and have since helped 1.5 million small businesses create profiles to organize, market and grow in a cost effective manner.
“Venmo enabled our business to start selling quickly and without friction, which was a major advantage for moving fast and gaining early customer response. We opened a business account and started receiving payments on the same day. Venmo also offers very business friendly rates and fee structures, so we are able to reinvest more profits into growing our brand,” according to a representative of Olive Atelier, a modern reused goods business.
In addition to the money, the program will also give recipients access to technical expertise and mentorship on topics like legal services, financial analysis, digital marketing and more options. These resources come courtesy of a partnership with PayPal’s partners, Start Small, Think Big and Taproot Foundation, as well as PayPal and Venmo employees, who will provide mentorship, coaching pro bono.
Here’s what else small businesses stand to get:
- A $10k grant to boost their businesses
- Public promotion on the Venmo and PayPal websites and social profiles
- Business resources and professional consulting services
Recipients for the Venmo Small Business Grants will include special consideration for underrepresented communities, building on PayPal’s 2020 commitment of $535 million put together to provide financial relief as well as sustained support and long-term investment options to expand economic opportunities and address the racial wealth gap for people of colour and other underrepresented businesses and communities.