We hope K Servicing can quickly resolve any servicing issues impacting its customers."Ĭustomers have been contacting K Servicing in droves. We know this is a challenging time for small businesses and lenders that are managing PPP requests. "Customers of these loans need to contact K Servicing for support. "That portfolio and associated servicing obligations were retained by Kabbage, Inc., which now operates as K Servicing," American Express said. In an email to CNBC, American Express reiterated its past statements about the transaction and suggested borrowers reach out to K Servicing. Later that month, American Express swooped in, buying "substantially all" of Kabbage, including the Atlanta-based company's team as well as its small business lending technology and data platform.īut when PPP borrowers returned for their second loans in early 2021, it became apparent that American Express had left a mess behind. Rob Frohwein, Kabbage's co-founder and then CEO, called it "fintech's shining moment." At the time of publication in June, Kabbage had delivered funding to over 130,000 businesses, with an average loan size of about $29,000.
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Many banks and credit unions were struggling to meet the needs of recipients in the government's $349 billion program for small businesses.Īs part of its Disruptor 50 series last year, CNBC included Kabbage (ranked 24th on the 2020 list) and highlighted the company's rapid move to partner with small banks and jump into PPP loans, helping get emergency assistance to restaurants, boutique hotels, beauty shops and corner retailers. The Lindsays' struggles are familiar to thousands of Kabbage customers, who were relieved last year when the fintech company came to their aid with an easy-to-use online application that could walk them through a complicated process. "We're down to our last bit of savings," she said. The couple started Esteamed Solutions in 2018 with retirement money from Dawn's years of waiting tables at a sushi restaurant and Todd's career at Cargill.
"This is the worst company and we may lose our loan that we desperately need for our business," said Dawn Lindsay from her home in Lula, Georgia, about 70 miles northeast of Atlanta. The orphaned division, now known as K Servicing, has left borrowers frustrated, confused and searching for answers as their businesses hang on by a thread. Not included in the deal was Kabbage's loan book, which had become one of the biggest in the country for distributing PPP funds. American Express acquired Kabbage in August.
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