Money Mobility Tracker – October 2022

October 4, 2022

Following the onset of the pandemic, the United States government had to respond quickly to disperse stimulus payments to about 90 million individuals in the first few months. At the same time, the Paycheck Protection Program (PPP) was testing the limits of the relationship between government and commercial lenders through the Small Business Administration (SBA), as about 11.8 million forgivable PPP loans were approved.

While both the federal and state governments made improvements as the pandemic progressed, problems persisted throughout, and there remains significant room for improvement.

This edition of the “Money Mobility Tracker®” explores how the digital relationship between government and consumers shapes government disbursements and what the future of government disbursements may hold.

Around the Money Mobility Space

Indiana’s recent efforts to distribute tax refunds and inflation relief demonstrated the significant difference that digital processes can make. While many paper check recipients had yet to receive even their first payment for $125, digital disbursement recipients were already receiving the second payment for $200 directly to their bank accounts.

The Inflation Reduction Act includes several rebates for energy-saving consumer purchases, from installing wind or solar power to investing in a heat pump or electric vehicle. In total, $80 billion is earmarked for consumer market incentives, compared to $260 billion set aside for business tax credits and large-scale renewable energy projects.

Addressing Government Assistance Pain Points for Small Business

During the early days of PPP loans for small businesses, the program was being designed even as it was being implemented. Commercial lenders, which already provide guidance and assistance to businesses seeking government-backed loans, played pivotal roles in ensuring that PPP loans went to eligible recipients and creating digital solutions that enabled approvals to work more smoothly.

To get the Insider POV, PYMNTS spoke with John Moshier, CEO at ReadyCap Lending LLC, to learn more about how small businesses are overcoming the difficulties of government disbursements.

Finding the Way to Better Government Disbursements

Following the disbursement of $931 billion to 165 million individuals during the first two years of the pandemic, the U.S. federal government has learned a number of lessons from such an unprecedented level of direct aid. While there were successes, the take-home message was that government needs to find a better way to engage with citizens that simplifies and speeds up the process.

On the business side, the distribution of PPP loans showed the benefits of partnering with players in the payments space, as commercial lenders carried a significant portion of the weight in making the program successful.

To learn more about the path to improving government disbursements, read the Tracker’s PYMNTS Intelligence.

Download PDF

Table of Contents

  • Government Payments Respond To Pandemic Lessons
    A year into the program, 30% of PPP loan applicants were still experiencing delays or rejections related to processing.
  • Paper Processes Slow Government Disbursements
    As government programs continue to play a critical role in pandemic economic recovery, paper processes are slowing and delaying disbursements.
  • A Better Way For Governments To Pay
    The successes and struggles that emerged during the pandemic demonstrated the potential of private-public partnerships.
  • Consumers Want Faster Payments — Including From The Government
    Almost one-third of surveyed consumers would pay for instant government disbursements.
// Related Resources

Cashing a check or need Ingo Money App customer support?