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Guide to SBA Loans Coronavirus Disaster

With the Corona Virus disaster, so many questions have been asked regarding getting financial aids that can help people survive this difficult time, SBA Loans can help you.

Business owners have also asked what the bailout funds mean and how they can be accessed and put to good use. We will take a look at some of these questions that were asked by participants of a webcast that held on the 6th of April, 2020.

Question: How do I Apply for the Paycheck Protection Program Or SBA Loan?

Answer: The applications for the Paycheck Protection Program (PPP) is done online or via calls to the non-ban lenders or small business owner’s banks. The small Business Administration in the U.S does not run the PPP loan fund; this responsibility has been handed over to banks across the country. They are in charge of managing the applications and lenders both large scale and commercial banks are involved in the process.

Question: When does the repayment start?

Answer: the repayment for the PPP loans has been scheduled to commence not later than six months after the loan is active. The loan comes at an interest rate of 1 percent and payment has been spread over a period of two years.

Question: How is the loan amount Calculated?

Answer: the way the PPP has been organized allows businesses with employees less than 500 and has been in operation before February 15, 2020, to get up to $10 million. Borrowers must be able to show that they will use the loan for eligible costs such as payroll, rent payments, mortgage payments, and utility bill payments among others.

Question: Are third-party agents eligible to apply for the loans?

Answer: third party agents are not allowed to apply for the PPP loans. Hence, the owners who need to apply for these loans are encouraged to do so themselves. However, it is recommended that business owners should not apply online by using third-parties because the applications are approved on the basis of first-come, first-served. As a result of this, any slight delay in applying can lead to delay in getting approval.

Question: What is EIDL?

Answer: EIDLE stands for Economic Injury Disaster Loan. This is a program that has existed before the SBA initiative that was designed to offer bailout loans for small businesses adversely affected by the economic or environmental disasters in the country. What makes the EIDL program different from the PPP is that EIDL does not use banks and non-bank lenders to verify, underwrite, and distribute the loans. The EIDL is entirely managed by the SBA. However, as a result of the coronavirus pandemic that has led to the shutdown of businesses, the EIDL program had to cap its loans between $25,000 and $35,000, and the grant was changed to $1,000 for different small business employees with a number of workers not more than 10. Another thing that distinguishes PPP from EIDL is that loans obtained under the EIDL program cannot be forgiven, they have to be repaid.

Question: What if my bank doesn’t lend for the PPP?

Answer: if this is the case, then you will have to register with another bank that is approved by the SBA.

Question: What if we pay employees with the money we get and after eight weeks we still cannot support our employees? What happens? Do we lay them off? Or are we still get debt relief for this period?

Answer: For the first eight weeks, you can apply for forgiveness once the funds are allocated. You can go back to your lender to have the funds forgiven but it is not clear what happens after the eight weeks.

Question: Can I use the PPP to pay for rent?

Answer: Yes!! you can use it to pay for rent. One-quarter of the PPP loan and used for rent or mortgages can be forgiven it was signed before February 15, 2020.

Question: Is PPP eligible for nonprofits?

Answer: Yes, nonprofits are eligible to get the Paycheck Protection Program (PPP)

Question: What is the time frame for getting the PPP?

Answer: This varies and has no definite pattern. It depends on the small business owner’s relationship with the banks, and the competency of the applicant in case of individuals.

Question: What if I am the only employer that pays myself a salary. Do I qualify for PPP?

Answer: Yes, you qualify to get the PPP. Those who usually file their tax form as S corporation qualify.

Question: Can one carry both EIDL and PPP?

Answer: Absolutely Yes! Both PPP and EIDL can be used together provided they do not go for the same purpose or cost. For example, a small business owner could use the EIDL for capital investments and fixed costs, while PPP can be used to pay rent and salaries.

This article was brought to you by TFC Title Loans, we try to bring to you the most informative information. If you are interested in getting a title loan local to you, we are able to help you with our large referral network.

We will help you to get the most money by using the equity that you have in your vehicle, the application is fast and we can provide you with same-day funding.

All of our referral partners are in compliance with the CFPB. We will help you to get the money that you need but from a trusted and reliable title lender.

Essential loans like finding the nearest title loans by applying via online TFC Title Loans can help with the best loan terms in the industry. We can get you approved the same day and in most cases, we can even wire the funds straight to your bank.

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DISCLAIMER: As our policy to make sure you know what we do and what are our limitations, we offer you these disclaimers. We are NOT A LENDER and we do not make short term cash loans or credit decisions. We are a referral service and work only with licensed lenders/brokers.

We may act as the broker for the loan and may not be the direct lender. Loan proceeds are intended primarily for personal, family and household purposes. We do not offer or service student loans.

*Loan amounts by the lenders vary based on your vehicle and your ability to repay the loan.

*Since we do not lend money directly we cannot offer you a solicitation for a loan, except in the state of California. In all other serviced states we WILL match you with a lender based on the information you provide on this website. We will not charge you for this service and our service is not available in all states. States that are serviced by this Web Site may change from time to time and without notice. Personal Unsecured Loans and Auto Title Loans are not available in all states and all areas.

*Auto Title Loan companies typically do not have pre-payment penalties, but we cannot guarantee that every lender meets this standard. Small Business Loans typically do have pre-payment penalties and occasionally will use your car as collateral to secure the loan.

*All lenders are responsible for their own interest rates and payment terms. TFC Title Loans has no control over these rates or payments. Use of the work competitive or reasonable does not mean affordable and borrowers should use their own discretion when working directly with the lender.

*The amount of people who applied for a loan and we helped and those who received a loan is not the same. We cannot guarantee we will find a lender who will fund you.Just because you give us information on this web site, in no way do we guarantee you will be approved for a car title loan or any other type of loan. Not all lenders can provide loan amounts you may see on this web site because loan amounts are limited by state law and/or the lender. Some lenders may require you to use a GPS locator device on your car, active all the time. They may or may not pay for this or charge you for this. This is up to the lender and we have no control over this policy of the lender. Typically larger loans or higher risk loans use a GPS.

*In some circumstances faxing may be required. Use of your cell phone to receive updates is optional.

*Car Title Loans are expensive and you may have other ways to get funding that is less expensive. These types of loans are meant to provide you with short term financing to solve immediate cash needs and should not be considered a long term solution. Residents of some states may not be eligible for a loan. Rejections for loans are not disclosed to our firm and you may want to contact the lender directly.

*Car Title Loan lenders are usually licensed by the State in which you reside. You should consult directly with these regulatory agencies to make sure your lender is licensed and in compliance. These agencies are there to protect you and we advise making sure any lender you receive money from is fully licensed.

*Trading Financial Credit, LLC dba TFC Title Loans, Car Title Loans California, Dineromax. If you are using a screen reader and are having problems using this website, please give us a call at 1-844-242-3543 for immediate assistance.

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