PPP loans are part of the provisional relief funds Congress passed in the early stages of the COVID-19 pandemic to help businesses stay afloat.
The controversial PPP has its unique terms and conditions. And while some business owners have benefitted, others have cited difficulties qualifying or problems with leniency.
Borrowers who meet certain conditions are entitled to partial or full loan forgiveness. Still, laws around PPP usage and leniency are unclear, and businesses must proceed with caution.
But whether you’ve taken out one or not, all business owners must look beyond the paycheck program because of the following reasons;
- PPP won’t cover all your business needs.
- PPP will fade away post-pandemic.
So what are some options or alternatives to PPP loans?
- SBA Loans
The Small Business Administration was a staunch supporter of micro-enterprises, even pre-pandemic.
Even though the SBA leads other banks in distributing different relief funds, it continues to offer its regular loans to applicants who qualify.
Some Small Business Administration products to try include; SBA 7(a) Loans, SBA Express Loans, SBA 504 Loans, SBA Microloans.
- Alternative lenders
Beyond the SBA, banks and credit unions are also alternative lenders.
These online lenders offer different kinds of loans, like payday loans for example.They also have less strict underwriting procedures. have less strict underwriting procedures. However, their rates may exceed the interest rates for standard business loans.
So collateral and bad credit may not be an obstacle, but funding could be slightly expensive.
- State & local relief Programs
State authorities and communities teamed up to support small businesses through programs like crowdfunding and Main Street support. Search here to see what’s still available in your locality.
- Private resources
Many private organizations announced different relief programs in the early stages of the Coronavirus pandemic.
Goldman Sachs, Salesforce, and Zapeir are just a few. Some of those funding programs are still in progress, so businesses must research thoroughly.
- Local banks
Your local bank is probably offering some form of relief funding or continuing its regular lending program.
Visit them or browse their website for the latest information on funding. By applying from local banks, you enjoy certain perks, including; quick loan acceptance, repayment assistance or postponement, and more.
As many relief programs max out their reservoirs, business owners must look beyond provisional sources and consider permanent options from local banks and alternative lenders.
Nevertheless, you want to make the most of what’s still in progress because relief programs have more forgiving terms than regular products.
Author Bio: Michael Hollis is a Detroit native who has helped hundreds of business owners get a merchant cash advance. He’s experimented with various occupations: computer programming, dog-training, accounting. But his favorite is the one he’s now doing — providing business funding for hard-working business owners across the country.