Long-Term Financing Tips for PPP Small Business Borrowers

The Paycheck Protection Program asserts that the SBA will forgive recipients’ loans if they keep employees on the payroll for eight weeks and use the money for payroll, rent, mortgage interest, and utilities. While many small business’ are counting on this loan forgiveness as a source of short-term financing, it is important to have other financing solutions ready for down the road. It is also easier to obtain a loan now while there is money in the bank.

When looking at your PPP money, here are some things to consider:

PPP money will only last in the short term. If you have a lender who is interested now, you can start the approval process and see what you qualify for; this long-term financing relationship will come in handy when you need funds quickly. An additional loan will act as a safety net in the event that a bank chooses to exit a client.
It is always better to look for financing before you need it. The rule of thumb is 90 days out if you don’t have a lender lined up.In the event of another unexpected shut down, it will be beneficial to begin financing now for your future. The Paycheck Protection Program alone can’t keep your business running, and business owners who keep this long-term perspective will be at a financial advantage down the road.

About Lending Source

Lending Source LTD, a proven SBA financing agency, will help you secure and manage your SBA loan from start to finish. All borrowers are deemed eligible as they are assumed to be “adversely affected by COVID-19.” If you get an SBA loan now, you will have 6 months of your payments made for you, as required by the CARES Act. These are full payments of principle, interest, and associated fees; they are not deferments. Take advantage of this exceptional loan environment.

Use this Funding to:
• Buy or Acquire a Business
• Start a Business
• Buy Out a Partner
• Refinance Current Debt
• Purchase Buildings and/or Equipment

Loan Conditions
• 10-Year Loan Term for Non-Real Estate Transactions
• 25-Year Term For Real Estate Transactions
• Loan Amount up to $5 million

Lending Source is dedicated to helping small businesses obtain the relief they need today to ensure their future success. Don’t hesitate to get the help you need during these challenging times. Please contact us if you are interested in our complimentary services.