PayPal announced this week that it has filed regulatory applications to create PayPal Banka new industrial lending company to support small businesses.

The company said Monday it filed documents with the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC) to launch PayPal Bank.

PayPal said the bank would allow the company to offer lending solutions small businessesas well as savings accounts with interest. It also plans to pursue direct membership of card networks to complement processing and settlement activities through existing banking relationships.

If PayPal’s application is approved, customer deposits would be covered by FDIC insurance, which protects up to $250,000 per depositor per insured bank.

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PayPal announced plans to launch an industrial bank called PayPal Bank that would serve the financial services needs of small businesses. (Justin Sullivan/Getty Images)

“Getting capital remains a significant hurdle for small businesses striving to grow and scale,” said Alex Chriss, CEO of PayPal. “The establishment of PayPal Bank will strengthen our business and improve our efficiency, allowing us to better support small business growth and economic opportunity in the United States.”

PayPal selected Mara McNeill to serve as president of PayPal Bank. McNeill has over 25 years of experience banking, commercial loan and private capital. Prior to joining PayPal, she was President and CEO of Toyota Financial Savings Bank.

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Small businesses could access loans and deposit services at PayPal Bank. (James Carbone/Newsday RM via Getty Images)

The company’s announcement noted that since 2013, PayPal has provided access to more than $30 billion in loans and working capital to over 420,000 business accounts worldwide. This access helps small businesses leverage the capital they need to expand, buy inventory, or make investments in their workforce and business equipment.

Industrial banks are regulated by the states, as well as by the FDIC if they are members. Unlike banks covered by the Bank Holding Company Act (BHCA), industrial banks are exempt and do not necessarily have to be bank holding companies, allowing non-financial companies to own and operate a industrial bank.

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PayPal CEO Alex Chriss said PayPal Bank will help serve small businesses. (Alex Wong/Getty Images)

Otherwise, they are subject to the same regulatory and supervisory processes as other banks. Industrial banks are also permitted to make all types of consumer and commercial loans and accept federally insured deposits, according to the state of Utah Department of Financial Institutions.

Bank letter requests have been stimulated this year by the Trump administrationwhich has favored a deregulatory approach to allow financial institutions to help spur growth.

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The administration’s Office of the Comptroller of the Currency last week granted pre-approvals to cryptocurrency giants Ripple and Circle to explore establishing domestic trust banks, which could further integrate digital assets into the US banking system.

Reuters contributed to this report.