The roll out of the Paycheck Protection Program Loan (PPP) through banks has been a disaster. Millions of small business owners have been left out of securing this vital lifeline during a time when their business is threatened with extinction. At banks, they have been met with confusing processes, failed submissions and an overwhelmed poorly trained staff. Frustration for many owners has only added to the stress of trying to survive during this time.
This should not be a surprise since banks are not set up to give out loans. Their processes are designed to reduce their risk and not give out loans! What made the government think this was the right way to go (besides the banking lobby?)
Finally, later in the first round of PPP funding, the federal government allowed FinTech lenders like Biz2Credit, Lendio, Fundera, Paypal, Intuit and Kabbage to act as agents to secure these loans. This was a wise decision since all of these companies have a strong infrastructure to process loan applications quickly. Under the process, they collect the needed information and then help select a lender where they think you have the best chance of the application getting submitted to the SBA. This should increase your chances of funding.
I interviewed Ken Burtnick at Paychex about their partnership with some of these FinTech Lenders and what the process is like.
It is unlikely even in this second round of funding of $310B that there will be enough money for all companies. Experts expect that it will take $1 to 1.5 trillion to be able to accommodate all small business owners needs. However, I recommend that every business, independent contractor and sole proprietor apply now since there will likely be a round 3 or 4 of funding in this process.
Here is an expanded list of FinTech lenders that are participating as agents for this program.
Remember, you can’t get a loan if you do not apply. If you paid taxes in 2018, you are entitled to help from the Federal Stimulus programs.
