PPP Loans - Alternative loans you may qualify for

What is a PPP Loan?

In 2019, the SBA released the Payment Protection Plan providing forgiveable funding for small businesses to keep their workers on the payroll and other costs related to COVID-19. Qualifying businesses could receive up to $2 million which was calculated based on 2.5% of the company's average monthly payroll expenses. If the proceeds were used within the SBA's guidelines, it was 1005 forgiveable.

Are PPP loans still available?

As of May 31, 2021, the PPP loan program ended. Meaning the SBA is no longer accepting new applications for this program. This may present challenges to businesses still feeling the effects of a COVID-19 economy. Alternative funding solutions are available to help your business acquire the funds needed to progress.

PPP Loan alternatives offered by First Union Lending

Don't waste time from your business researching possible alternatives to a PPP loan - you'll come across countless lenders, banks, and other financial entities focusing on the deal rather than what's best for your business. At First Union Lending, your success is important to us.

We've helped businesses in the past acquire PPP funding; just because the program has stopped doesn't mean we've stopped assisting companies in getting funds quickly.

Our goal is to build long-term, lasting relationships by providing businesses with the funds they need when they need them. Our Funding Specialists have the knowledge and expertise to find the best funding program suitable for your business.

PPP Loan Alternatives You May Qualify For

The SBA stopping issuing PPP loans doesn't mean all hope is lost. There are various loan programs available that can suit your business needs. At First Union Lending, we offer several loans and credit programs that can quickly provide the funds you need.

Here are some of the programs we offer small businesses to help them thrive and grow:

• SBA Loans

  The same entity that created the PPP loan program has many other loans available to help your small and growing business. First Union Lending offers various SBA-backed loans that fit your needs.

  The U.S. Small Business Administration partly guarantees the funding for these loans to traditional and non-traditional lenders. The program provides highly flexible rates and terms ideal for small businesses. Well-established companies looking to expand their initiatives can use several SBA loans.

  Businesses must meet the following qualifications to be eligible:

  • Operate for profit
  • Be considered a small business, as defined by the SBA
  • Be engaged in, propose to do business in, the United States or its possessions
  • Use alternative financial resources, including personal assets, before seeking financial assistance.
  • Not be delinquent on any existing debt obligations to the U.S. Government.

  The following SBA loans, in particular, can benefit small but growing businesses that need funding help with day-to-day expenses or large-scale projects:

  SBA 7 (a) loan:

  7(a) loans are typical within the SBA family. The 7(a) loan has access to up to $5 million in working capital for 25 years. This option is typically adequate for most industries. Interest rates range between 7-8%.

  SBA 504/CDC Loan:

  504 loans provide long-term, fixed-rate financing through Certified Development Companies (CDCs), the SBA's community-based partners who regulate and promote economic development within their communities. A 504 loan may be the ideal loan program if your business needs to purchase commercial real estate or perhaps a large piece of equipment.

  The borrower may need to provide 20% of the total value, with the SBA kicking in 40%, and the lender will give the rest. The cap on a 504 loan is generally $5 million.

  Businesses must meet the following qualifications to be considered eligible:

  • Have a tangible net worth of less than $15 million
  • Have an average net income of less than $5 million after federal income taxes for two years preceding your application

• Business Line of Credit

  Banks, financial institutions, and licensed lenders often extend credit to creditworthy customers to address fluctuating cash flow needs. Borrowers use this financing option rather than a significant, long-term business loan. It is effectively a source of funds that borrowers can readily tap into at their discretion.

  When borrowers open a business line of credit, they receive access to a state amount of funds to use as needed. A monthly statement reflecting the amount of credit used will also include any interest charges, and borrowers will only pay interest on the funds used.

  Most lenders will require the following basic information during the application process:

  • Copy of Business License
  • Tax Returns
  • Three months of Bank Statements
  • Standard financial documents like P&L, AR, AP, Cash Flow, etc.

• Equipment financing

  Equipment loans are funding options that allow for business-related purchases. Companies opting for this loan can buy personal protective equipment (PPE), computer hardware, cash registers, cooking equipment, construction vehicles, etc.

  Businesses often need to purchase, replace, repair, or upgrade various equipment to serve their customers better. If you believe your business needs to upgrade or buy new equipment, we're here to help!

• Long-term business loans

  This type of term business loan provides borrowers with a lump sum of funds, with a repayment plan of a regular interval of 5 to 25 years. A long-term business loan has a fixed floating interest rate and monthly or bi-monthly payments deducted from a business bank account. This financing option is best for businesses that need significant capital at a lower interest rate. 

• Short-term business loans

  Short-term loans can be highly beneficial during a growth period, fluctuating cash flow times, or a need for seasonal purchasing. It provides a lump sum upfront to a borrower and has a repayment period ranging from three months to three years. Small or medium-sized businesses can use these loans to enhance their activities.

  Short-term loans have almost no limitation on their uses, and borrowers can decide how to spend the funds once they receive them within 1-2 business days. The application process requires proof of business ownership, financial statements, tax information, P&L statements, and a copy of your driver's license. Lenders will check your business and personal credit as well.

How To Apply for Business Funding: Requirements and Getting Started

If you've missed your opportunity to jump on the PPP loan bandwagon, it's okay - There are plenty of other funding options available!

First Union Lending is ready to finance your business!

Submit your business information below to determine if you qualify for any available small business loans. Our Funding Specialists will analyze your qualifications and reach out to walk you through the required steps to receive funds.

While each of the available loans has varying qualifications, lenders will typically ask for the following general information:

• Business Operations History
• Business Revenue Statements
• ersonal & Business Credit Scores
• Collateral if needed

First Union Lending provides various businesses across the United States with the funds needed to grow and generate revenue.

If you have any questions in regards to any business loans, feel free to give us a call: 863-825-5626

Advantages of Utilizing Other Business Financing Options

Depending on which loan you qualify for, there are many benefits in partnering with a lender to gain funds for business initiatives. The funds from these financing options can solve various challenges while opening new doors for a growing business.

Loans provided through First Union Lending help borrowers cover a range of expenses in their day-to-day operations. The funds allow borrowers to cover payroll, make payments on equipment, pay the lease, and more.

Utilizing out-of-pocket funds can be expensive and quickly burn a hole in your pocket. Rather than spend your earnings right away on tedious expenses, look to a lender to finance your initiatives.

Choose First Union Lending As Your Premier Lender

At First Union Lending, we believe that small and medium-sized businesses deserve the right to access the capital they need to succeed. We have acquired much of the same licensing traditional banks require to cement our fiduciary responsibility to our clients and work culture.

We are here to consult, help you save, and guide you and your business to success.