Empowering Small Business Success: PayPal Launches Policy Call to Action

By Ziyang David Fan, Government Relations

As we kick off National Small Business Week and Small Business Month, ​PayPal launches a policy framework designed to support the resilience and growth of small businesses in the fast-changing digital economy.

A Vision for Small Business Policy

Small and medium-sized businesses (SMBs) are the lifeblood of the global economy - making up 90% of businesses, more than 70% of employment, and 50% of GDP worldwide. At PayPal, we empower these enterprises through our suite of digital tools, supporting over 20 million SMB accounts in more than 200 markets to drive innovation, create jobs, and foster vibrant communities.

While we celebrate their contributions and successes, small businesses often face significant challenges in an ever-changing marketplace and increasingly complex policy environment. Small businesses are often the most nimble and dynamic economic actors yet frequently find themselves navigating frameworks designed for enterprises with larger workforces or resources. Well-intentioned regulations can inadvertently restrict opportunities for small businesses precisely when they most need support to grow and adapt.

By focusing attention on how existing policies affect small businesses in practice, we can make targeted adjustments that better serve the companies driving our local, regional, and national economies. Often, simple refinements to policy implementation can make the difference between a small business thriving or struggling.

At a time when approximately half of small businesses rely on day-to-day sales or owners' personal savings to survive and one in five express concerns about their long-term prospects, meaningful support requires collective effort from all stakeholders. Our Small Business Policy Call for Action represents PayPal's commitment to advocating for policies that support entrepreneurs worldwide.

_{Michelle Gill, EVP and GM of SMB and Financial Services}

We invite policymakers to consider how economic transitions impact smaller businesses differently than large enterprises. We encourage trade associations to amplify the voices of their small business members in policy discussions. And we call on technology providers to develop solutions that help businesses navigate changing market conditions.

"Small businesses are the engines of economic growth and innovation across the globe," said Michelle Gill, EVP and GM of SMB and Financial Services at PayPal. "PayPal's Policy Call to Action reflects our dedication to advocating for policies that remove barriers and create opportunities for small businesses everywhere."

A Five-Pillar Framework for Small Business Success

_{Richard Nash, Head of Global Government Relations}

At PayPal, small businesses aren't just our customers - they're our partners. Throughout the years and across the globe, we have learned their challenges firsthand, and we are convinced that a clear, forward-thinking policy environment is critical for their success. We have identified five policy areas that can improve the landscape for SMBs:

"Securing financing, navigating complex regulations, and adapting to digital transformation are among the biggest challenges for small businesses today," said Richard Nash, Head of Global Government Relations at PayPal. "PayPal's Call to Action addresses these pain points directly, with practical policy recommendations that can make a real difference in SMBs' ability to compete and grow."

1. Enhance Access to Capital

Access to capital is the lifeblood of small business growth and success - essential not only for individual business development but for the health of the broader economy. However, appropriate services to access finance remain out of reach for many SMBs. Currently, more than three quarters of small businesses are concerned about access to capital as they try to maintain or grow their businesses. PayPal has responded to this gap and become a strong partner in small business financing. We passed $30 billion in global loan originations* and have extended more than 1.4 million loans and cash advances to more than 420,000 business accounts globally since 2013. But we could all do more to make it easier for small businesses to access the capital they need.

Our framework calls for:

• A policy environment that recognizes the unique needs of small business financing and allow for diverse funding solutions
• Clear guidelines on the responsible use of alternative data sources for credit assessment
• Robust open banking frameworks that empower small businesses to securely grant access to financial information for capital
  

2 . Reduce Regulatory Burdens

The cornerstone of our economy deserves policies that work as intended for businesses of all sizes, not just larger enterprises. Small businesses often lack compliance expertise and staffing, making complex regulations disproportionately burdensome.

Our framework calls for:

• A reduction in small business reporting burdens, and the adoption of more flexible approaches such as tiered filing based on the size of the business
• Public policy that ensures small businesses have the ability to choose the best payment options for wider accessibility
• The creation of more forward-looking regulations for new payment tools, such as stablecoins, to make payments faster and cheaper for small businesses
  

3 . Strengthen SMB Cybersecurity

Trust is essential for SMBs to grow their customer base and offer secure services. Small businesses are increasingly targeted by cybercriminals yet often lack resources for protection. According to recent Small Business Administration research, small businesses are the target of 43% of all cyberattacks, while only 14% have adequate security measures in place. It's critical to increase cybersecurity awareness and educate SMBs on the risks.

Our framework calls for:

• Authentication solutions that are risk-based and tech-neutral
• Public-private partnerships on cybersecurity education to raise awareness of the risks and appropriate measures and solutions SMBs can easily deploy
• Cross-sectoral industry collaboration focused on data sharing to prevent fraud and scams
  

4 . Accelerate Digital Transformation

Unlike large enterprises, many small businesses have been slower to adopt and reap the benefits of digital tools like AI, often as a result of knowledge and capability gaps. The digital economy offers tremendous opportunities, but these are accessible only to businesses equipped with the right tools and knowledge. Millions of U.S. SMBs have achieved their highest sales volume while leveraging PayPal products, highlighting the impact of digital transformation on small business success.

Our framework calls for:

• Public-private partnerships to provide comprehensive digital skills training programs for SMBs
• The creation of trusted platforms for sharing practical AI use cases and best practices among SMBs
• The development of AI interoperability guidelines for SMB digital tools
  

5. Support Small Business Adaptability to Reach New Markets

The global markets can present both challenges and opportunities for small businesses. In 2024, PayPal processed over $200 billion in cross-border payment volume, demonstrating the significant potential of global markets for small businesses. By supporting policies that enhance small business adaptability and resilience, we can help ensure these vital enterprises can navigate market transitions while continuing to grow.

Our framework calls for:

• Rules that enable payment systems to remain open, efficient and accessible for cross-border payments
• Tools and resources that help small businesses navigate complex international regulatory environments
• Simple customs and compliance procedures for small exporters
  

Join Us in Supporting Small Business Success

These five policy priorities reflect the challenges small businesses face every day. Through our work with millions of small businesses, we have seen how thoughtful policy approaches in these areas can make a meaningful difference - whether by improving access to capital, reducing regulatory complexity, strengthening cybersecurity, accelerating digital transformation, or bolstering adaptability in global markets. As we celebrate Small Business Month this May, we invite all stakeholders to join us in supporting policies that foster a digital economy where small businesses can adapt, innovate, and thrive.

_{*The lender for PayPal Business Loan and PayPal Working Capital in the United States is WebBank. PayPal Working Capital and PayPal Business Loan are currently unavailable to businesses located in certain states.}