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Online Lender Kabbage Launches New Credit Program For Small Businesses

The new initiative comes with the backing of American Express, which purchased the online lender in 2020.

Now that it has the backing of American Express ( (AXP) - Get American Express Company Report), online lender Kabbage is launching a new credit program for small businesses.

The online lender founded out of Atlanta in 2008 was purchased by American Express in the summer of 2020 for an undisclosed amount. 

Since then, the company has continued to expand its reach of small businesses looking for funds for day-to-day operations or long-term projects.

Named Kabbage Funding, the new loan program allows small businesses to apply for a flexible line of credit between $1,000 and $150,000 by connecting their business account into the app. 

That allows them to see what they are eligible for and at what rate. 

Businesses need to have been operating for at least one year and can choose between a 6-, 12- and 18-month loan term.

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"Most small business owners start a company to pursue a passion, not to spend time managing their cash flow and balancing their books," Rob Frohwein, Kabbage co-founder and senior vice president at American Express, said in a statement. 

In the last year, the company has also launched the Kabbage Checking business banking account and Kabbage Payments, a way for vendors to accept online payments that will be more widely available in 2022. 

Kabbage is designed to work in tandem with American Express. Customers of the latter who are identified as small business owners are able to see and select these options on their online accounts.

At close on Tuesday,  (AXP) - Get American Express Company Report shares were up 3.90% at $166.95.