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The first round of $ 349 billion in funding for the Paycheck Protection Program ran out in less than two weeks. Now that the new The Paycheck Protection Program and the Health Care Improvement Act were enacted, $ 310 billion more has been designated to help small businesses keep their employees on the payroll. The U.S. Small Business Administration said it would resume accepting applications from approved PPP lenders on Monday.
Critics of the Paycheck Protection Program (PPP) say too much of the initial money went to the big banks which, in turn, prioritized customers looking for larger loans or those with whom they already had loan relationships.
This new round of funding includes provisions to channel financial assistance to small businesses initially deprived of loans. The law provides $ 60 billion for small and medium-sized community banks and less traditional credit unions and loan companies that are approved by the SBA.
If you were unable to apply for a PPP loan from a national or regional bank, below are the nonbank and alternative lenders to consider, along with some tips on how to assess them.
How to Check Potential PPP Lenders
MMake sure that any company you plan to work with has been approved by the SBA to lend through PPP. If you receive communications from a potential lender, use them SBA advice to make sure it’s legitimate.
Also, ask the right questions before submitting your information to a lender, says Jared Hecht, CEO and co-founder of Fundera, an online loan market. This will prevent you from submitting an application that ends up languishing, without being funded.
“You should ask what percentage loans are actually funded. It should be 100% within 10 days or close enough, ”he says. According to SBA guidelines, lenders should disburse the first installment of loans within 10 days of approval of a loan.
Non-bank lenders accepting PPP loan applications
BlueVine: This online business lender will accept applications any small business interested in applying for a PPP loan. BlueVine’s website states that qualified applications will be submitted to the SBA when program funding becomes available. The SBA is accepting applications again starting Monday, April 27.
SBA Centerstone Loans: This SBA approved non-bank lender is now accept applications small businesses looking for P3 loans, but not sole proprietors or independent contractors.
Source: As a non-bank lender authorized to make SBA 7 (a) loans, Fountainhead initially agreed to applications of any small business, not just existing customers. The company has currently suspended candidate submissions. If it resumes acceptance of applications, you can apply for a loan online as the first step in the process.
Fundraising circle: This online marketplace, which connects investors and small businesses looking for loans, is now accept PPP requests. Once you submit the online form, Funding Circle will connect you with an account manager to complete your request. His website says he can refer you to one of his partners for funding.
Raise Small Business Funding: This SBA-approved non-bank lender says it focuses on commercial real estate loans at “small business borrowers who have traditionally been ignored by large regional and community banks. »It accepts PPP loan applications from any eligible business through its website.
Kabbage: Before the coronavirus crisis, this financial technology company provided loans to small businesses and consumers through its lending platform. It has now partnered with an ASB-approved bank to process and disburse PPP loans to qualified small businesses. But while PPPs can provide businesses with up to $ 10 million in forgivable loans, you can only apply for $ 2 million in financing through Kabbage.
Intuit / QuickBooks Capital: This accounting, tax and budgeting software maker has received SBA approval to serve as a lender for PPP loans. Freelance Payroll and QuickBooks customers who filed 2019 taxes with TurboTax Independent can to identify to their accounts to see if a PPP application is available. Others can sign up to be notified when QuickBooks Capital begins lending to other businesses.
Lender: This California-based community development financial institution (CDFI) has a online application process and can submit PPP loans to the SBA with small businesses in the following states: California, Colorado, Florida, Georgia, Illinois, Iowa, Maryland, Michigan, New Jersey, New York, Pennsylvania, and Texas. Lendistry announced on April 23 that it had received an influx of capital from Goldman Sachs to help fund PPP loans. Companies can only receive $ 250,000 in PPP funding from Lendistry.
On the bridge: This online non-banking lender has been approved by the SBA for accept applications for PPP loans. The company’s website says that priority can be given to existing OnDeck customers and that any approved loan can be issued by OnDeck or one of its banking partners. Applicants will be notified of the bank they will be working with when the loan is approved. The company is processing and management of loans in partnership with Celtic Bank.
PayPal funds: Also approved by the SBA as a non-bank lender, PayPal is now accept applications for PPP loans from PayPal merchants. The company works with WebBank as a partner lender.
Square capital: Although Square is best known for its point-of-sale software, the company has received SBA approval for accept applications for PPP loans. Its website says you can sign up to get updates on when you might be able to apply. Current Square customers will be notified when the program goes live. If you’re not yet a customer, you can create a Square account to receive program updates.
The source of the loan: As one of a small group of non-bank lenders who were approved by the SBA in 1994, his website says it is currently accepting and processing PPP requests.
VelocitySBA: This SBA-approved non-bank lender says on its website that it is aimed at existing customers to process PPP requests. Potential borrowers can continue to check the site for updates.
Brex: Although the company is best known for its business credit cards that don’t require a personal guarantee, Brex has teamed up with Womply, a loan officer who connects potential borrowers from SBA approved lenders. Brex clients can complete a application who uses Womply’s software to submit qualified PPP loan applications to the SBA.
Community Reinvestment Fund, United States: More commonly known as CRF, this community development financial institution is a registered nonprofit organization that focuses on supporting nonprofits and small business owners. After receiving capital from Goldman Sachs, CRF is now accept PPP requests Missouri nonprofits and small businesses; New Hampshire; Ohio; Rhode Island; and Salt Lake County, Utah.
Fundera: This online loan marketplace indicates its website that if you don’t have a loan relationship with a bank, you can use an application to have access to several PPP lenders. Fundera can then direct your request to the lender with the most bandwidth to process your request.
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