The $349 billion Congress set aside for small businesses as part of the Coronavirus Aid, Relief and Economic Security Act ran out on Thursday, and digital lenders are anxiously awaiting the next round of funding to deliver what they say is a better customer experience. 

“There are still millions of [small and medium sized businesses] that haven’t received funding,” said Brad Brodigan, chief commercial officer at BlueVine. “We are still processing and accepting documents so we can submit to the [Small Business Administration] immediately.” 

Digital lenders like BlueVine, OnDeck and Kabbage received approval last week to lend directly through the SBA’s Paycheck Protection Program, meaning they no longer need to lend through a partner bank. Until Congress approves more funding, however, fintechs must wait to deliver on promises that they can distribute the relief funds faster and to a broader set of customers than traditional banks. 

Many banks have been reluctant to take on new customers through the SBA program because the know-your-customers (KYC) standards designed to prevent high fraud rates associated with government stimulus programs are challenging. BlueVine and Kabbage, however, are both taking on new customers through the PPP and say their technology has prepared them for the strict KYC requirements as well as take on new customers. 

Brodigan said BlueVine’s cloud-based KYC technology fully automates the entire process. “That’s really the foundation of our lending platform and an advantage we had to start with,” he said. “It’s very hard for traditional banks to go beyond their existing customers with this program.” Redwood City, Calif.-based BlueVine has connected clients with more than $3 billion in funds since its 2013 founding. 

See also: OnDeck, BlueVine are latest fintechs to provide PPP loans 

According to Brodigan, BlueVine can also process PPP applications in less than an hour, much faster than traditional banks, which can take days or weeks. BlueVine was originally processing applications through a partner bank before gaining approval to be a direct lender through the SBA last week, which gives the platform access to the SBA’s E-Tran portal, speeding the application process even more, said Brodigan. 

OnDeck has been processing PPP loans through Celtic Bank and was approved as a direct SBA lender last week. The company is waiting for Congress to approve more funding to lend directly through the SBA. “As the Federal Reserve recently highlighted, established online lenders, like OnDeck, serve a broader, more diverse cross-section of American small businesses than traditional banks,” CEO Noah Breslow said in a statement when OnDeck received direct SBA approval. The New York City-based company was founded in 2006 and has connected clients with $13 billion in total. 

Although the initial funding for small business through the CARES Act has dried up, fintechs are still accepting applications in anticipation of additional funding becoming available soon. By accepting applications now, the fintechs can submit to the SBA as soon as more money is available, crucial for the first-come, first-served program. 

Congress is working this week to approve a $450 billion funding package, of which $300 billion will go to the PPP, according to Treasury Secretary Steven Mnuchin.  

Regardless of how fast fintechs can process PPP applications, they still have to contend with the SBA’s E-Tran system, which has frustrated lenders and small businesses alike with slowdowns due to heavy volume. The slowdowns have been understandable, given the demand, but BlueVine has seen improvement in the system since being plugged in as a direct SBA lender, Brodigan said.