If you didn’t apply for pandemic-related financial assistance or you need additional funding to help your business reopen and grow, there are many options still available to you. You’ll find many options in this list of resources, including programs that have just opened and others that are always available.
Given all the options available to you, it’s important to know the difference between reputable lending options and predatory lenders to ensure a challenging situation isn’t made any worse. Before you take on a loan that promises fast capital and seems too good too good to be true, review these options and find out what you should be looking for when evaluating funding options.
Important to know:
- Some pandemic-related loan programs have ended, while others are just getting underway. The list that follows will help you prioritize your options.
- Even if you’ve been turned down before, if you need funding for your business, please contact us. We’re fully focused on helping small businesses succeed and we’ve helped thousands of entrepreneurs who haven’t been able to secure funding elsewhere.
- When you apply, it’s essential to work with a reputable lender who can help you get the best terms for your needs and to help you avoid the pitfalls of predatory lending.
Loan programs to help small businesses reopen, operate and grow
Here’s an overview of several loan programs tailored to small businesses, including resources for those that haven’t yet received or were unable to secure an SBA PPP loan or other assistance earlier.
- The New York Forward Loan Fund (NYFLF) is a new economic recovery loan program aimed at supporting New York State small businesses, non-profits and small landlords as they reopen. The program’s goal is to provide affordable working capital loans to help severely impacted businesses over the coming months. There’s no fee to apply.
- Small businesses that haven’t received an SBA Paycheck Protection Program (PPP) loan or an SBA Economic Injury Disaster Loan (EIDL) for pandemic-related challenges are eligible to apply and $65 million is earmarked for small businesses. Most businesses and industries are eligible, too.
- To qualify through Pursuit, your business must have 20 or fewer full-time-equivalent (FTE) employees, have less than $3 million in gross revenue annually and have suffered a direct economic hardship as a result of COVID-19 related social-distancing policies and stay-at-home orders.
Entrepreneurs of Color Fund
- The Entrepreneurs of Color Fund is a collaborative effort between Pursuit and JP Morgan Chase that provides affordable loans to minority-owned small businesses in New York State, New Jersey and Pennsylvania.
- Loans are available from $10,000 to $500,000 and the online application is straightforward and convenient. In addition, one-on-one support is provided at no cost to you throughout the loan process to guide and assist you.
- The fund provides affordable financing for small businesses that are competing for local, city and state contracts.
Paycheck Protection Program
The PPP loan program has been extended to August 8th, meaning that even more small businesses can apply for capital to pay staff, rent and other expenses through the program. Businesses are eligible for up to 2.5 times their average monthly payroll, and sole proprietors and independent contractors are also able to apply for the program.
With support from the Goldman Sachs 10,000 Small Businesses program, Pursuit is accepting PPP applications through July 31st at 5 PM EST. You can get started on an application here: pursuitlending.com/pppapply.
Additional programs that can help you now and as your business grows
- In partnership with the New York City Department of Small Business Services, the Contract Financing Loan Fund increases the availability of affordable financing – with a zero-percent interest rate – for small businesses competing for New York City contracts.
- Working capital loans can help you get back to business and grow strong again. They can be used for a broad range of eligible uses, from support for day-to-day operations through growth.
- Low-interest loans with favorable terms can help you refinance existing business debt. Whether you need to refinance a single loan to achieve better rates or you want to consolidate business debt to significantly lower monthly payments, there’s an option that can help.
In addition to these programs, numerous disaster relief programs are still available through local agencies and organizations. You can view an updated list at any time in our COVID-19 resource center.
Predatory lenders: Be aware, be informed and stay away
Predatory lending refers to unethical practices that are unfair, deceptive or even fraudulent. When business owners are pressed for funding, though, these loans can seem attractive, because they’re often advertised as offering quick approvals, easy applications and little-to-no documentation.
Here’s what to be aware of and avoid:
- Offers that seem too good to be true. If you see promises of quick approvals regardless of your credit score, be wary. Deals like these almost always come with hidden costs, like high fees and interest rates that jump after a few months.
- No credit check. Before approving a loan, most lenders check your credit to ensure that you are a responsible payer and that you can handle the additional debt. If lenders skip this step, it means they’re not concerned about whether you can pay back the loan; instead, their goal is to get money out of you some other way.
- Exorbitant interest rates and annual-percentage rates (APRs), prepayment penalties and unrealistic repayment terms, such as requiring daily or weekly payments. (This includes lenders’ ability to take a significant part of your revenue through automatic withdrawals from your credit card readers and bank accounts.)
- Inclusion of additional charges for extra services you didn’t ask for and don’t need.
Let us help
We’re small business specialists and we make it easier to apply, get approved and get back to business safely. When you work with us, you’ll have access to a community-focused lender that is 100% invested in providing the best possible loans for you now and in the future.