When you go to www.sba.gov and finally land on the Disaster Loan Applications you cannot even apply anymore it says the following “To apply for a disaster loan unrelated to COVID-19, click here” you back out of that link and then go back and there is no link to apply to anything anywhere that makes sense.
I went and looked up the “Payment Protection Plan” on Google go back to www.sba.gov and then click on “Find a Lender” found lenders in my area and then downloaded application. Easy enough application and it was lawyered up the right way to protect the government. Still it just seems to much of a pain in the ass to get done. The most I can get with PPP is $30,000 with three employees.
Next step, call a private bank lender, Merchant Cash or hard money lender however you want to call it. This was interesting. The gentleman laid some pretty hard-selling tactics on me but I thought to myself let’s see what we can get done. I received a one-page application and based upon my credit score and my bank statements I was approved for $32,000. The cost of the loan was offered me to pay a factor rate of 1.32 or $42, 240 or $10,000 to $32,000 and pay it back in 8 months at a daily rate of $245.58. Payments would start 30 days from the loan being disbursed into my account. It seems like a lot of money for 8 months.
Five Keys to Succeed :
The next stop was to a direct lender who works with national banks. What was interesting about National Corporate Credit you come to the site and they offer two programs and that’s it, easy. I like easy.
I talked to a person on the phone, quite pleasant and easy to understand, no pressure. I had my approval the next day which was $105,000 on a credit line. I was approved for another loan program but I wanted no interest for 12 months. It was all done and approved by 5 banks, with credit cards and two credit lines. Here’s the beauty of the program, no collateral, no personal guarantees, and no high interest. Everything worked to about 10% across the board which was fair. I use it if I need it and the fee was fair to get the money comparable to the hard money loan.
In full disclosure I wrote this article based on my experience and gave National Corporate Credit my permission to publish on their website. Either way, waiting on PPP money, not sure if I will get my EDIL loan but at least I am not stuck. Keep looking for solutions.