When the Paycheck Protection Program (PPP) first opened up, a lot of small business owners became hopeful that it might help them survive the economic downturn caused by the ongoing pandemic. Even better was the promise of forgivable loans if they used the funds for particular expenses.
However, they were soon disappointed as a lot of them found themselves shut out of the
$349 billion PPP. Luckily, things are finally turning around for some of them.
Night & Day Difference
According to small business owners, the re-opening of the program recently was much less chaotic than its initial run. Valerie Riley, the owner of the assistant services company LifeSquire, even described the difference as night and day.
The Oklahoma City-based entrepreneur said that she experienced weeks of delays caused by poor communication with her accountant during her first try at applying for PPP. Taking matters into her own hands, she tried once again and secured $140,000 for her 22-employee company on the same day she applied.
Business owners who succeeded like Riley have reportedly found how the funding they got became a much-needed financial lifeline that helped them deal with the economic consequences that the global health crisis caused.
Small businesses across the United States, offering non-essential products and services, were forced to shut their doors. Meanwhile, those who have managed to remain open saw a decline in the number of customers given the shelter-in-place orders.
The loan program offers small business owners up to $10 million in loans with lower interest rates. To qualify, a business should be employing 500 or fewer workers.
The good news is that some can have their loans forgiven altogether when the funds are used for paying employees.
One tactic that proved to be useful for small business owners who secured a loan is sending in multiple applications in attempts to increase their chances of being approved.
Case in point is the experience of Triangle Smart Divorce owner Jenny Bradley, who resorted to applying via three lenders during the second rounds of applications. The North Carolina-based entrepreneur initially applied only through one.
She found luck with the online loan marketplace, Lendio, which matched her with a lender that approved her for a $105,000 loan. The amount is set to keep her eight-person firm afloat amidst the crisis.
Speaking on her experience, Bradley shared that she decided not to just put all her eggs in one basket after her first attempt.