There’s a growing risk associated with stimulus and PPP payments. This article is here to tell you more details concerning the situation and the PPP payments.
Stimulus & PPP Payments
Under the CARES Act, more than 2 trillion dollars went into the American economy. Mostly, the money has been going directly to individuals: these are the very stimulus checks. The money has also been going to small businesses in the form of Paycheck Protection Program (PPP) loans.
Consumers are spending their stimulus payments, and the PPP loan recipients are looking for forgiveness of their loans under the CARES Act. This is expected to increase the risks to financial institutions from inadequate compliance programs. So, it becomes more important to monitor how the funds are being used.
On the other hand, more and more “overseas investors” are emerging who have endless variants of advance-fee scams and unrealistic hopes for businesses desperate for financial support that they couldn’t receive or didn’t qualify for PPP loans.
Thankfully, your options aren’t limited to only government-backed business financing. To get fast and easy access to working capital, consider applying to a respectable alternative online lender like FirstAmericanMerchant.com.
With a reputable business funding provider like FAM, you can enjoy the most reliable and cheapest possible merchant funding instead of relying only on PPP payments. FAM is an award-winning high risk processor and alternative lender that carries an A+ rating with the BBB.
Financial Institutions & PPP Loans
Banks arranging government loans meant for businesses hit by COVID-19 could take as much as $24 billion in associated fees, according to The Wall Street Journal (WSJ).
Banks will succeed with $18 billion in fees for processing small business PPP relief loans during COVID-19, as Amanda Fischer, the Washington Center for Equitable Growth’s policy director has estimated.
As of July 6, the amount that could be borrowed made up $132 billion, according to the federal Department of the Treasury. Now, when the deadline has been extended, potential borrowers can apply for the PPP loans until Aug. 8.
As you see, the PPP loans are one of the ways the government tries to help small businesses in this unprecedented economic crisis. However, these aren’t the only option to rely on, especially now when PPP loan-related risks are being discussed. Alternative online lenders are another option to go for.Get Started Now