Are you a business owner in the U.S.? The government offers various support options to help you fight the created situation. The Economic Injury Disaster Loan (EIDL program) or Paycheck Protection Program (PPP) are among the support programs offered by the government. If details concerning the credit check for PPP loans and alternative options are the thing you’re interested in, read below.
PPP Loans & Alternative Funding to Fight the Crisis
The COVID-19 virus has damaged so many lives and businesses around the globe. The state-backed Aid, Relief, and Economic Security (CARES) Act is developed to help businesses fight the crisis.
This act offers various financing options such as Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans. Loan terms related to a PPP loan don’t differ from lender to lender.
Before applying, you’d better find out whether you qualify for this type of financing or not. You can apply to any 7(a) lender that’s approved by the SBA.
Credit Check for a PPP Loan
Does your credit have some problems? If yes, it makes sense to check your credit reports before turning to a lender. A PPP loan comes through the SBA 7(a) loan program. Be aware that personal credit checks go through Experian.
The good news is that if your credit creates problems for you to get a PPP loan or government-backed financing option, you can apply to a reliable alternative online lender like FirstAmericanMerchant.com.
FAM is an award-winning alternative business funding provider that specializes in the high risk field. With FAM, you can get fast and easy approval for a merchant cash advance or any other funding option regardless of your credit.
When it comes to whether your credit affects your eligibility or not, remember that your bad credit shouldn’t have a significant impact on your approval for a PPP loan. However, the lender may lend you less than you expected. When the lender checks credit to determine your eligibility, the lender’s name will be related to the inquiry.
To sum up, if you need a PPP loan, check your eligibility in advance. As for your credit, it may affect the amount you’re expecting to receive. Thankfully, you can also try alternative funding options for your business.