
PPP Loan Forgiveness Misconceptions
Many businesses find value in taking out a merchant cash advance. But, they may need to consider using a reverse consolidation to help pay it back.
PPP loans were issued to help keep small businesses afloat during the coronavirus pandemic. As a form of unsecured finance, PPP loans were granted to qualifying businesses to help them continue to pay their employees, amongst other costs.There were strict eligibility requirements, as well as conditions as to what the loan had to be used to cover.
The Paycheck Protection Program is now on its second round of funding for eligible businesses. However, some business owners may have already been declined a PPP loan. If you applied, but received a denial, you may be wondering why. You may also be looking for alternative forms of business funding. On the upside, there are many other options you have available to your business (keep reading for more on these)!
We’re here to tell you everything you need to know after being denied a PPP loan. We will share some common funding methods so you can easily assess your alternative business funding options.
If your loan was denied, you’ll likely have received notice directly from the lender, rather than the SBA. It’s possible they won’t give a reason for your denial. There are some common reasons for denial, such as: a mistake in the application, your business doesn’t qualify for the loan or you have previously defaulted on a SBA loan. If you received a rejection without reason, you should try to contact the lender directly to find out why.
There are a few other kinds of loans that you can apply for in lieu of receiving a PPP loan.
The SBA has many other types of loans available for small businesses facing financial hardship and economic uncertainty. Here are a few options:
Whether you’ve been denied a PPP loan or are looking for unsecured financing options for your small business, you have a lot of routes to consider.
Let’s take a look at some popular business funding options that can provide you access to capital quickly:
Having the ability to access business funding quickly can greatly impact your success. Although many business owners were denied PPP loans, there are other SBA options to aid business owners facing the negative effects of COVID-19.
Additionally, alternative sources of unsecured finance like merchant cash advances or online term loans exist to meet the needs of small business owners.
Many businesses find value in taking out a merchant cash advance. But, they may need to consider using a reverse consolidation to help pay it back.