POOF! 13 days is all it took for the allotted $349B Paycheck Protection Program funding to run out. In less than two weeks, 1.6 million business owners applied for funds which is only a small fraction of the 30.2 million small business owners in the USA.
For those small businesses unable to get funding, confusion surrounded the program. Most big banks were unable to process the loans and funding guidelines changed daily. As the SBA changed their requirements to big banks, fintech companies struggled to find their place in the first round of funding, only being given the green light at the very end of round one. As if to pacify small business owners, they were promised the forgivable $10K EIDL advance grant as a buffer but, that too was delayed and didn't bare fruitful relief.
With the 2nd round of the PPP, that means all the money that was allotted must have been funded, right? Not so fast Speed Racer! According to the NFIB, "20% of everyone approved received their funds, but 74% still have not received their approved loan amounts (+/- 6% margin)."
What was promised to small business owners was speed of money in hand but what was received was confusion, delayed funding, and banks that were unwilling to open their doors to new clients. It is frustration at its finest.
So, where does that leave the business owners? That leaves them to find the right lender for PPP funding round 2. As a business owner you should ask the following questions so you can properly prepare your paperwork:
What paperwork is required?
How much do you fund on average? (The average approved from round one of PPP funding was $206K, but 74% was under $150K)
What is the turnaround to receive funds after submitting paperwork? (In round one, many lenders could not handle the influx of applications and many small business owners were waitlisted since they are not current customers)
Lendtek is proud to work with a reputable lender with an average funding turnaround time of 48 hours. If you missed your opportunity the first time around, don't miss it this time! Download the Lendtek mobile app in the Google Play and Apple app stores to begin your PPP application now. If you don't have access to the Lendtek mobile app, you can still apply for the PPP application on your desktop HERE. Note: You will still need to download the Lendtek mobile app to track the status of your loan.
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