PPP spelled out on Dice

Answers to Your Most Pressing PPP Loan Questions – Part 2

4 min read • Apr 01, 2021 • Lendio

UPDATE: The PPP loan application period ended May 31, 2021. Learn about financing options available for small businesses today at Lendio.com

 
The latest round of the Paycheck Protection Program (PPP) has been more complex than most of us could have imagined. This round comes with unique calculations and requirements for business entities as well as additional layers of scrutiny that didn’t exist in the last rounds of the program. To help you keep your application moving forward, here are the answers to this week’s most frequently asked questions regarding the PPP.

 

What happens if I am funded somewhere else?

That is great! The most important thing is that you get the funds you need.

The SBA will only fund a business once on a first draw and once on a second draw PPP loan. If your business receives funds through another lender, there’s nothing more you need to do. Your other applications will not be accepted through the SBA with any other lender.

How do I find out who my lender is? Through the SBA or Lendio?

Either Lendio or the lender will reach out to you to let you know who will be funding your PPP loan.

 

Do I have to wait 8 weeks to receive funds with Lendio?

The time frame for receiving funds truly depends on each individual application. It is impossible to provide accurate estimates that apply to the program as a whole. As soon as you submit a fully completed application, Lendio works to submit it for approval as quickly as possible.

 

Why am I being asked to convert my Schedule F into a Schedule C?

You shouldn’t be asked to convert a Schedule F into a Schedule C. Both documents are acceptable. However, there may be extra steps involved in getting the information from a Schedule F into the system for submission.

 

What does it mean to be denied for “High-Risk Activity” by Lendio or a lender?

Any feedback or denial should come via communication from Lendio or the lender; however, many times specific details are omitted as to why—usually due to fraud checks. Know that fraud checks are very common in this round, even for legitimate applicants. If this happens to you and you are sure you qualify, reach out to your Lendio representative as soon as possible.

 

Does Lendio submit applications without reviewing them?

No, Lendio never submits applications without a thorough review. Each application is subject to a number of checks, per SBA guidelines.

 

What is a PLP number?

After reviewing your application, the SBA makes an initial loan decision. If the SBA issues you an SBA Loan number, also known as a Preferred Lending Partner (PLP) number, this number indicates that funds are reserved for your loan. Your loan now needs to go through the underwriting process before it can be disbursed. Within their system, the SBA uses the term PLP number. Externally, SBA loan number is more commonly used, but ultimately, the two terms refer to the same thing.

 

Can I apply for a PPP loan with more than one lender at once?

Yes, and Lendio encourages every applicant to do so. We want to see every business owner get access to critical relief funding during this tough time, no matter the provider.

What does it mean if my application has been moved to Lendio’s Compliance Team?

This means your application and supporting documents are being looked at by our team to ensure the details can be verified. This is according to the SBA’s guidelines for determining qualification for a PPP loan. With applications being heavily scrutinized by the SBA in this round of the program, Lendio is committed to carefully adhering to all compliance processes.

What are the forgiveness guidelines?

The forgiveness process for first and second draw PPP loans is roughly the same. So long as you have used the funds on eligible expenses, and you have submitted the correct documentation, your loan should be forgiven by the lender.

Congress has streamlined the process of forgiveness for loans less than $150,000; however, lenders are still waiting for more details on what these borrowers will need to submit in order to apply.

The best advice we can offer until more official guidance is released is to document everything. Keep receipts and records to show what you use your PPP funds for, and make sure it’s for eligible expenses.

 

Can I receive the second draw if I just received my first draw funds this year?

Yes, you can receive a second draw if you received your first draw in 2021, but there are a few caveats. You must spend or prove a plan to spend your entire first loan before applying for a second one. You’ll also still have to meet the second draw requirements including proving a 25% revenue reduction and having 300 or fewer employees.

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