The important thing is not being afraid to take a chance. Remember, the greatest failure is to not try. Once you find something you love to do, be the best at doing it.

Francisco Villa, Co-Founder National Corporate Credit

Small Business Administration Cuts EIDL Loan cap to $150,000 and many applicants fall off

Small business administration is cutting its loan offer from $2million down to $150,000 and a lot of businesses with employees will be stuck with no end in sight. What are these businesses going to do now with trying to keep people employed with very limited revenue coming through the door?

What’s confusing is saying that everything is on a limited basis and a first come first serve basis. As a business owner what and how is that going to help you? Well basically it will not help you and what’s the solution. Just as many experts predicted the money and banks will only give out so much money and now business owners will need to turn to other banks to get the fund they need to keep their businesses afloat or die and bad business death.

How will these businesses survive

I make a conscious effort to keep things in perspective when I get burned out. It is easy to get stuck in the daily grind, but if you think about all the distance you have covered, and what lies ahead, it is much easier to feel motivated and optimistic.

Mikyle Jessen, Co-Founder National Corporate Credit

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 :

  • Plan Ahead

  • Be Prepared

  • Take Action

  • Think Ahead

  • Keep that Rainy Day Fund

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.

Ready to talk?

Let’s take your idea’s to next level with Start-Up Capital and realize your dreams

APPLY NOW