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Are You A Struggling Business? We Have Good News!

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There’s still money accessible for small U.S. businesses grappling with the fallout of the COVID- pandemic.

Need Cash flow for Your business to survive because of the pandemic? 

Here’s How to Tap the Paycheck Protection Program:

The Small Business Administration on May announced that there is more than $billions in funding, available for the Paycheck Protection Program (PPP)—nearly two weeks into the second round of funding.

So far, lenders have processed roughly. Business loans worth over $50 billion as of this May. Small lenders handled a percentage of these loans, valued at nearly $50 billion, the SBA said. The average loan size is $58,000.

In April, President Donald Trump approved into law the Paycheck Protection Program (PPP) and Health Care Enhancement Act. The second PPP round, which unfolded in April, made possible extra $ for struggling businesses.

The first round of the PPP ran out of money in days. The second round was presumed to deplete funds even more promptly. One reason that the program may still have money, is that concerning duplicate applications, said Marwan Forzley, co-founder and CEO of Veem, a payments provider. “The pipeline had quite a bit of applicant's from companies that already applied someplace else," he said.

Brock Blake, founder, and CEO of Lendio said they’ve urged businesses to produce multiple applications for PPP loans.

Numerous businesses were frightened they wouldn’t receive money, so they attempted funding through multiple lenders at the same time, Forzley said. This may have slowed down the program, he said.

For example, Kevin Plein, co-founder of A-Game Sports, applied for a PPP loan through JPMorgan Chase Ticker: JPM, Lendio, and BlueVine. Plein prevailed in obtaining a loan for less, through Chase.

“The businesses are very anxious about the PPP and rightly so,” Forzley said.

The duplicate applications put lenders in a tough spot, Lendio’s Blake said. Banks will typically spend a “bunch of time” verifying an applicant’s information, he said. Then, they submit the file to the SBA and find out the customer already has a PPP loan. “They just wasted a lot of time on underwriting,” Blake said.

Veem and Lendio—who are not lenders—are among several fintech approved by the SBA to process loan applications for the program. Veem, of San Francisco, has raised funding from investors, including Goldman Sachs Group GS, or Google Ventures, Alphabet’s GOOGL venture fund, and Silicon Valley Bank.

Veem has helped process “thousands” of PPP loans, said Forzley, who wouldn’t disclose the exact number. Veem typically works on small and medium-sized loans of a few million or smaller, he said.

Lendio provides a marketplace for small businesses to find financing. The Lehi, Utah fintech has raised millions, according to Crunchbase. Investors include Mercato Partners, Comcast Ventures, Napier Park Financial Partners, and Stereo Capital, PitchBook said.

More than, small businesses have used Lendio to secure $billions in PPP funding. The fintech in April, hired additional people to deal with the demand of PPP, producing its current workforce.

Some business owners are under the impression that lenders simply stamp some documents, and then fund the loan, Blake said. That’s not the reality. Many applications contain errors that slow down the application, he said.

Veem’s Forzley advises companies to make sure to have all their documents together before applying for a loan through the PPP. Businesses that have to pause their applications to search for documents lose precious time, he said. Veem has provided a PPP checklist on its website to help companies.

“The best assurance for success in terms of applications sent and approved, is the quality of applications when they are submitted,” said Forzley. “Have everything that you need ready.”

Both Blake and Forzley think there will be a third round of the PPP. Many businesses have yet to apply for government aid, Forzley said. “Even if one million business owners didn’t get funding, there are still one million businesses that need funding,” Blake said. “There is a high chance that there is around three.” I would hate to think otherwise.

References for the above article regarding specific statistics are found at the available website...