LATHRUP VILLAGE, Mich. (WXYZ) — The SBA’s stimulus backed PPP loan is a hot commodity! With limited funds available, we wanted to know what makes the difference between getting approved and getting wait listed?
" Smaller banks are easier to reach, smaller banks are easier to communicate better," said Lathrup Village Tax Accountant Lawrence Levy.
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Levy says the clients of his that went with smaller SBA approved lenders like community banks and credit unions, fared better.
"The smaller banks just appear to have a much more hometown feel and you’re getting things done apparently a little quicker than we’ve seen at the big box banks," said Lawrence Levy.
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"Big banks are over inundated with applications, and facing criticism that they’ve prioritized their bigger clients over the micro sized businesses," said Levy.
So lots of companies with less than 20 employees are thinking outside the box.
"An alternative source such as PayPal we’ve heard one of our clients did get funded successful for it," said Levy.
Frank Chacin, owner of a home furnishing retailer, Sobe Furniture.
The journey started off rocky like it has for many small businesses.
"I did what probably most business owners did which is panic," said business owner Frank Chacin.
"Its been a very challenging time," said Chacin.
Chacin applied for PPP with his big box bank back on April 3rd.
"Here we are today, it’s been 24 days since I applied and I’m yet to hear back from Bank of America," said Chacin.
Frustrated, he decided to try PayPal, one of several Financial technology (Fintech) companies now approved as an SBA PPP lender and only then, did his luck change.
Everything was done within a week.
"My best piece of advice is don’t give up even if you haven't heard back from your bank, even if you’ve gotten denied, you can apply with one of the Fintech companies,"
So here’s the Rebound Rundown:
- Apply with a smaller bank
- Call and ask banks about their backlog wait-list
- Don't forget Fintech SBA lenders
PayPal not the only Fintech company that’s an approved PPP lender .
SBA APPROVED FINTECH LENDERS
PayPal - current customers only
Intuit QuickBooks - current customers only
Square - current customers only
OnDeck
Funding Circle
BlueVine
Kabbage
Ready Capital
Credibly