American Express may soon expand its roster of small business clients as the company is reportedly in talks to buy online lender Kabbage.
The banking giant is in advanced talks to acquire the small business lender, according Bloomberg, which cited a person familiar with the matter.
The deal would reportedly be all-cash and could be valued at as much as $850 million – with an agreement potentially forthcoming later this month, the publication reported.
Spokespeople for both American Express and Kabbage declined to comment on the report.
Kabbage has provided funding through the Paycheck Protection Program throughout the coronavirus crisis, doling out $5.8 million worth of loans to 209,000 small businesses.
Meanwhile, American Express has taken other steps to help out small businesses, which have been hit particularly hard by lockdown measures that shut down large swaths of the economy this spring. The bank, for example, recently launched credits for customers who shop at small businesses.