With the Paycheck Protection Program nearly out of funds and not accepting new applications, Scott Crockett, Everest Business Funding’s CEO, provides insight into other funding options for small businesses that still need help.
July 14, 2021 /MarketersMedia/ — The federal government created the Paycheck Protection Program in the spring of 2020 to aid small businesses devastated by the coronavirus pandemic.
After multiple rounds of re-funding, the program has distributed almost $800 billion in loans to help small businesses in a little more than a year in operation. The best part about the loans is that, depending on how the proceeds were used, companies could apply for them to be converted to forgivable grants.
Today, though, the PPP is nearly out of funds, and the Small Business Administration — which is running the program — isn't accepting new applications. With the economy improving slowly but surely, it's also unlikely the government will pump more funding into the PPP.
The federal government has other financial relief programs offered through the SBA.
The Restaurant Revitalization Fund, for instance, recently started accepting applications. Established this March under the American Rescue Plan, the fund has $28.5 billion to give to small businesses owned by veterans, women, or people who are economically or socially disadvantaged.
The SBA began accepting new applications in April for the Shuttered Venue Operators Grant Program. There is $16 billion available for owners of live venues or theaters that were forced to close due to the pandemic.
Businesses that don't qualify under those two narrow programs can also seek out more traditional government-backed funding, such as the SBA 7(a) loans. This program provides loans up to $5 million for eligible small businesses.
Another option is to turn to private lenders with years of experience working with businesses of all sizes for different purposes. There are many advantages to working with a private lender outside the reach of the SBA.
For one, there aren't as many restrictions in terms of company size or how businesses can use the money. While the SBA funding options provide favorable loan terms, they often can be too restrictive in terms of their usage.
What's more, not all businesses even qualify for government-backed lending. Just because a company is too big to qualify doesn't mean it doesn't have financial needs, though.
That's why Scott Crockett advises businesses that missed out on a PPP loan to explore financing options through private lenders. In many cases, these loans can be much more beneficial than the remaining government-backed options available.
About Scott Crockett
Scott Crockett is the founder and CEO of Everest Business Funding. He is a seasoned professional with 20 years of experience in the finance industry. Mr. Crockett’s track record includes raising more than $250 million in capital and creating thousands of jobs. Scott has founded, built, and managed several finance companies in the consumer and commercial finance sectors.