PayPal has applied to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC) to set up a new industrial bank, named PayPal Bank. This move aims to strengthen its foothold in the U.S. small business lending sector. By establishing its own bank, PayPal seeks to streamline financing options for small businesses, potentially enhancing its service offerings in a competitive market. Leading the initiative is Mara McNeill, who brings extensive experience from her previous role as president and CEO of Toyota Financial Savings Bank. McNeill’s background includes significant positions at JP Morgan Chase and the U.S. Treasury Department, along with a history of service in the U.S. Air Force. Her appointment signals PayPal's commitment to building a robust banking division focused on the needs of small enterprises. This development follows PayPal's recent decision to offload approximately $7 billion in receivables from its buy now, pay later business to Blue Owl Capital. The shift in strategy indicates that PayPal is not only refining its lending practices but also looking to expand its banking capabilities to better serve small businesses. This move could reshape the landscape of small business financing, providing more tailored solutions for entrepreneurs.