If you are in need of a business loan, you might want to consider requesting one through the Pennsylvania Small Business Development Center (SBDC). The SBDC can assist you in finding the best type of loan for your particular situation.
If you qualify, you’ll be able to apply for a PPP loan. These types of loans are designed specifically for seasonal businesses, making it easier to access capital when cash is scarce. While not always available, this loan allows entrepreneurs to get the capital they need without sacrificing equity or interest rate. Here are some quick steps on how to apply for a PPP loan.
The Basics of a PPP Loan
To apply for a PPP loan, you’ll need to work with the SBDC and identify the type of loan you want.
Once your application is submitted, the SBDC will work with all parties involved to ensure that everything goes smoothly and confirm that your loan is approved. If it is, you’ll be able to start spending your money as soon as you receive it.
To find out more about how a PPP loan could benefit your business, visit the Small Business Development Center’s website or contact them directly.
Apply for a PPP Loan
The first step in the process is to contact the SBDC of your state. For example, if you’re in need of a business loan in Pennsylvania, you would contact the SBDC there. The next step is to fill out an application for funding that the SBDC provides to you. Normally takes about 20 minutes to finish, and it will help them decide if you are eligible for a PPP loan or not.
You will also want to provide details about your business in the form of financials and pay stubs. Once completed, they will either approve or deny your application for funding based on what they find during their analysis.
Once approved for a PPP loan, it can take anywhere from 7-14 days before you receive your funds. Once approved, your bank account will be debited has been given and then will deposit money into your account within three business days after that.
Common Problems with the PPP Loan
The Pennsylvania Small Business Development Center can help you find the best type of loan for your specific situation.
Problems with the loan process
Before applying for a loan, it’s important to know the problems that can arise with the process. It is challenging to get a loan from a bank when you have a seasonal business. A seasonal business is one whose revenue is highly dependent on when people are willing to spend money. For example, if your business only operates during the summer months when families want to go on vacations, you might find it difficult to get a loan from a bank.
The problem is that banks typically require borrowers to have collateral in order to give them loans. This makes it difficult for seasonal businesses because there is no way for them to provide any sort of collateral to get the funds they need. This leaves many entrepreneurs who own seasonal businesses without any options in terms of accessing capital when their cash flow decreases in the winter months.
What to expect after you submit your loan request
Once you submit your loan request, the SBDC will send a request to the Small Business Administration (SBA) for a review of your application. If approved, an SBA representative will contact you with rates, terms, and conditions. Once those details have been established, they will also provide you with an “intent to fund” letter that outlines the loan’s terms, including the interest rate and repayment period.
After receiving the intent to fund letter from the SBA, it is now up to your business to determine what type of collateral is needed for the PPP loan. The SBDC can help you decide which collateral would be best for your needs based on current market conditions.
Financing Your Next Seasonal Business
Do you have a seasonal small business? You might be in demand of some extra funds to keep it afloat.
PPP loans are designed specifically for seasonal businesses, making it easier to access capital during times when cash is scarce. This kind of loan permits entrepreneurs to get the funds they need without having to renounce equity or interest rate.
To request a PPP loan, most applicants need to be an individual or an organization that owns and operates a seasonal business in Pennsylvania. Both individuals and organizations will also need an active bank account with the majority of their investments held outside of this account. Furthermore, your projected net income must not exceed $1 million annually. If these requirements are met, here are the steps on how to apply for a PPP loan:
If you’re in need of a business loan, remember that there are options out there! First, you can apply for a PPP loan via the Pennsylvania SBDC. With this type of loan, you’ll be able to access capital during your slow periods and avoid sacrificing equity or interest rate.