The Best Forgivable Loans for Small Business Owners

The Best Forgivable Loans for
Small Business Owners

Whether you are starting down the road of a new business or in need of some extra funds for expansion, finding a good small business loan will be a lifesaver.

There are a number of options for businesses but today we will look at finding forgivable loans for small business. These can help balance your investments without heavy risks.

How do you find these loans? How do you get to them? Let’s explore further.

How to Apply for a Business Loan

Before you find the best loan you need to understand the small business loan application process. While some of it is clear and easy, there are a number of nuances to it.

The step-by-step process on how to apply for a business loan has a few small details that, if missed, can make a world of difference.

Finding the Best Forgivable Loans for Small Business

Small business loans come in all shapes and sizes, but for major boosts to small businesses, a forgivable loan allows for a low-risk investment that is vital under major economic issues like COVID-19.

The forgivable aspect can help to loosen the heavy restriction of business debt, perfect for low-profit margins and small capital businesses.

There are 3 major forms of government-mandated forgivable small business loans. There are also private SBA-approved lenders.

Paycheck Protection Program Loans
Paycheck Protection Programs, or PPP loans, help to cover the basic costs of your business during major economic downtime. This often means payroll, but can help to cover other expenses as well.

The loan comes from a wide government pool, which means applications may be unavailable if the pool is low enough.

The loan itself covers 2.5 times payroll costs, up to $10 million dollars. Only businesses with less than 500 employees can apply.

Economic Injury Disaster Loan Program
The Economic Injury Disaster program helps to provide relief to small businesses hit by economic disasters.

The scope of who can apply to this program expands with the CARES Act, which helps any small business hit by COVID-19, which covers most of them.

The loan itself can provide up to $2 million in support of certain businesses.

Express Bridge Loan Pilot Program
Similar to the previous two loans, the Express Bridge Loan pilot program covers businesses from economic hardship but on a smaller scale.

The loan works in increments of $25,000 and acts as a bridge to get past a dip in profits and finances. COVID-19 expanded the program and loosened the requirements for applying.

The Best Small Business Loan Lenders of 2020

In addition to government programs, there are a number of high-quality lenders that can provide SBA-approved loans to small businesses in need.

Lendio provides a high overall service with an easy application process. They do tend toward higher interest rates but excel at customer service.

BlueVine has large loans with a simple and quick application process and low credit score requirements. They do have limited availability, though, and some surprise fees.

Fundbox is an automated process that gives fast and reliable funding but hands out low amounts with high APR. They are good for small bursts only.

These are only a few of the potential lenders at your disposal.

Keeping Your Business on Track and Healthy

With some forgivable loans for small business, you can get that quick boost you need to overcome those last few obstacles between you and a healthy business.

Funding isn’t the only major issue on the road to proper business success. Whatever problems or concerns you may have, we have a host of articles touching on these subjects. Check out another article today!