December 2, 2020 | By: LendVer Staff –
Yesterday, House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer pivoted from a prior position, and encouraged Senate Majority Leader Mitch McConnell to use a $908 billion bipartisan stimulus plan as a starting point for further relief negotiations.
When could stimulus be available?
A $2.2 trillion dollar stimulus package had been the previous focus of the Democratic contingent, but this is the first time they are considering a smaller relief bill as the basis for further talks. With the economy weakening, and COVID-19 cases on the rise, all factions of the government are beginning to feel extreme pressure to get further stimulus passed before the end of the year.
If a new standalone relief bill can’t be negotiated and signed into law, there is a bipartisan push for additional stimulus to be added to the spending bill that must be passed to avoid a December 11th government shutdown.
What’s in the $908 billion stimulus bill?
The $908 billion bipartisan relief bill would include, among other items, an enhanced $300 per week unemployment benefit for approximately 4 months, $160 billion in funding for state and local governments, $288 billion in funding for small businesses through the Paycheck Protection Program and other aid. Additionally, $45 billion would be allocated for transportation agencies, $82 billion for education, and $42 billion for healthcare, nutrition, and coronavirus related items including vaccine distribution.
How can you prepare?
If you are a small business owner, the news that additional Paycheck Protection Program financing could be available before the end of the year is a welcome blessing. The bad news is that the current bill being discussed only outlines a possible $288 billion in small business aid, which is nowhere near the $500+ billion already distributed through the PPP. Considering the extensive amount of time it has taken for Democrats and Republicans to even approach a possible reboot of economic stimulus, any PPP funds that become available will go lightening fast. To improve your chances of obtaining a first or second PPP loan (should financing become available), you should start your PPP application now before the rush. Additionally, you can begin to assemble your loan documentation, and the documentation list at the bottom of this page is a good guideline for what you should have ready.
The Loan Source has opened its PPP loan application portal in anticipation of Congress approving an extension to the program. The Loan Source is part of the selective SBA Preferred Lender Program, which is the highest level of approval status that a lender can receive from the SBA. The Loan Source was one of the leaders during the first rounds of the Paycheck Protection Program, originating over 5,000 PPP loans for approximately $500 million. The company is currently also servicing and handling the forgiveness process for over $4 billion of PPP loans. Since The Loan Source is not a bank, it does not require an existing relationship, or that you transfer funds or other business services to receive a PPP loan.
Where to get affordable business financing now…
Credibly is one of the few small business lenders that have been actively funding throughout the COVID-19 pandemic; applying with both is free, does not affect your credit, and you can receive funding within 24 hours.
Credibly specializes in delivering financing to a variety of businesses, and can fund from $5,000 to $400,000 directly, or up to $10 million through third-party capital partners. Credibly has a streamlined application process and can deliver funding to businesses in operation for as little as 6 months. Loan proceeds can be used for any business purpose, and borrowers with credit scores as low as 500 can apply for financing. Credibly offers early payment discounts instead of a penalty, and a large suite of funding options to ensure a product fit for any business.
It appears that the possibility of additional stimulus being passed before the end of the year has improved, and with coronavirus cases and business closures at all time highs, it has never been more needed. The coming days could bring encouraging news, while legislators on both sides of the aisle work to find a common ground, and provide much needed economic stimulus that everyone is waiting and hoping for.
Don’t hesitate to contact us if you are unsure of which financing option is the right choice for you, or if you need additional lender recommendations beyond those mentioned in this article.