<div id="readability-page-1">PayPal announced this week that it submitted regulatory applications to create PayPal Bank, a new industrial loan company to support small businesses. The company said Monday that it filed documents with the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC) to launch PayPal Bank. PayPal said that the bank would allow the firm to provide lending solutions for small businesses, as well as interest-bearing savings accounts. It also plans to pursue direct membership with card networks to complement processing and settlement activities through existing banking relationships. If PayPal's application is approved, customer deposits would have FDIC insurance coverage, which protects up to $250,000 per depositor, per insured bank. SMALL BUSINESSES REPORT RECORD MONTHLY SURGE IN PRICE INCREASES AS INFLATION PRESSURE MOUNTS<div><div> <img src="https://imageproxy.pbkrs.com/https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2025/12/931/523/paypal-headquarters.jpg/query-dGw9MSZ2ZT0x?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="931" height="523" original-src="https://imageproxy.pbkrs.com/https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2025/12/931/523/paypal-headquarters.jpg/query-dGw9MSZ2ZT0x"/></div> PayPal announced plans to launch an industrial bank called PayPal Bank that would cater to the financial services needs of small businesses. (Justin Sullivan/Getty Images)</div>&#34;Securing capital remains a significant hurdle for small businesses striving to grow and scale,&#34; said PayPal CEO Alex Chriss. &#34;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.&#34;PayPal selected Mara McNeill to serve as the president of PayPal Bank. McNeill has over 25 years experience in banking, commercial lending and private equity. Before she joined PayPal, she was the president and CEO of Toyota Financial Savings Bank.SMALL BUSINESS OPTIMISM RISES, BUT OWNERS SAY QUALIFIED WORKERS ARE STILL HARD TO FIND<div><div> <img src="https://imageproxy.pbkrs.com/https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2025/09/931/523/small-business-storefronts-street.jpg/query-dGw9MSZ2ZT0x?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="931" height="523" original-src="https://imageproxy.pbkrs.com/https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2025/09/931/523/small-business-storefronts-street.jpg/query-dGw9MSZ2ZT0x"/></div> Small businesses would be able to access loans as well as depository services at PayPal Bank. (James Carbone/Newsday RM via Getty Images)</div>The company's announcement noted that since 2013, PayPal has provided access to over $30 billion in loans and working capital to more than 420,000 business accounts worldwide. That access helps small businesses tap into the capital they need to expand, buy inventory or make investments in their workforce and business equipment.Industrial banks are regulated by states as well as the FDIC if they're members. Unlike banks covered by the Bank Holding Company Act (BHCA), industrial banks are exempt and don't necessarily have to be bank holding companies, which allows non-financial companies to own and operate an industrial bank.SMALL BUSINESSES LEAD NOVEMBER JOB LOSSES AS TARIFF UNCERTAINTY WEIGHS ON HIRING<div><div> <img src="https://imageproxy.pbkrs.com/https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2025/12/931/523/alex-chriss-paypal-ceo.jpg/query-dGw9MSZ2ZT0x?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="931" height="523" original-src="https://imageproxy.pbkrs.com/https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2025/12/931/523/alex-chriss-paypal-ceo.jpg/query-dGw9MSZ2ZT0x"/></div> PayPal CEO Alex Chriss said that PayPal Bank will help serve small businesses. (Alex Wong/Getty Images)</div>They are otherwise subject to the same regulatory and supervisory processes as other banks. Industrial banks are also permitted to make all kinds of consumer and commercial loans and to accept federally insured deposits, according to the state of Utah's Department of Financial Institutions.Bank charter applications have been spurred this year by the Trump administration, which has favored a deregulatory approach to allow financial institutions to help spur growth.GET FOX BUSINESS ON THE GO BY CLICKING HEREThe administration's Office of the Comptroller of the Currency last week granted preliminary approvals to cryptocurrency giants Ripple and Circle to explore the establishment of national trust banks, which could further integrate digital assets into the U.S. banking system.Reuters contributed to this report.</div>

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PayPal has submitted regulatory applications to create PayPal Bank, an industrial loan company aimed at supporting small businesses. The bank will offer lending solutions, interest-bearing savings accounts, and pursue direct membership with card networks. If approved, customer deposits will have FDIC insurance coverage. Mara McNeill will serve as president of PayPal Bank. Since 2013, PayPal has provided over $30 billion in loans and working capital to more than 420,000 business accounts worldwide.

- PayPal has submitted regulatory applications to establish PayPal Bank, an industrial loan company aimed at supporting small businesses by providing lending solutions and interest-bearing savings accounts.  
- The CEO stated that the bank aims to enhance efficiency and support small business growth, having previously provided over $30 billion in loans to businesses worldwide.  
- If approved, customer deposits will receive FDIC insurance, and the bank will be regulated by state authorities as well as the FDIC, allowing it to offer various consumer and commercial loans.

PayPal plans to launch bank serving small businesses around the US