May 12, 2020

8 Reasons to Finally Apply for Your PPP Loan

Since President Trump called for the SBA to increase SBA loan funding by $50 billion on March 11, small business lending has been swept up in the whirlwind that is the Paycheck Protection Program (PPP). If you’ve been watching from the sidelines as Congress, the SBA, lenders, and borrowers struggled to roll out the first round of the loans, you may be wondering if it’s finally time for your business to apply for a PPP loan. The time might be right if…

1. You Need the Money

If your business is one of the millions of small businesses negatively impacted by the COVID-19 pandemic, you may benefit from a PPP loan. True, it’s not a cure-all, but it is a resource, and at times like this, small businesses need all the help they can get. 

2. You’ve Kept Employees on the Payroll

If you haven’t let anyone go since the pandemic began, then you’re already a prime candidate for loan forgiveness.

3. You Fit the Requirements

The limited PPP loan requirements have made PPP loans accessible to the vast majority of American small businesses. Yes, there are some cases where a PPP loan may not be the best solution for your business, but if you qualify, you may be one of the millions of small businesses that can benefit from a PPP loan. 

4. The Second Round Is Going Smoother

You sat out the confusion of the first round of funding. Good news: the second round is going much smoother. In the first round, the SBA issued guidance the night before applications opened. Everyone was working around the clock to accept applications, process them, and disburse funds, with the SBA issuing guidance for the next steps along the way. Now that the dust has settled, PPP funding is running like a well-oiled machine. 

5. Funds Are Being Disbursed Faster

Applications, decisions, closing, and disbursement are all happening at a more rapid pace during the second round, meaning the funds you need may be available faster than you know it. 

6. More Lenders Are Funding

Toward the end of the first round of PPP loans, the SBA approved more financial technology (fintech) lenders. This move opened up the loans to borrowers that didn’t have a previously established relationship with an SBA lender. Plus, in the second round, some lenders who chose to sit the first one out have jumped in to fund businesses in need. 

7. The Money Won’t Last Forever

While the second round of funding has lasted longer, thanks in part to some limits imposed by the SBA, the funds won’t last forever. With 30.2 million small businesses in the US, the truth is that the $760 billion allocated for PPP loans (between rounds 1 and 2 combined) won’t cover every small business in America—not even close. 

8. There May Not Be a Round 3

The flip side of round 2 going slower than the first is that it’s looking less likely that Congress will approve a third tranche of funding. We can’t say for sure, but we wouldn’t recommend holding out hope for round 3. 


While every effort is made to ensure the accuracy of information when a story is published, the coronavirus pandemic and Paycheck Protection Program (PPP) have caused details to change at a rapid pace. Additional guidance from the government may change or clarify certain aspects of the forgiveness process and could result in changes to the information contained in these pages. For the most up-to-date information, please visit the COVID-19 section of our website. For more information, you can call us at (855) 853-6346. Lendio is not responsible for and provides no warranty as to the accuracy of this content. Lendio does not provide legal, accounting or tax advice. The information and services Lendio provides should not be deemed a substitute for the advice of such professionals who can better address your specific concern and situation.

About the author

Mary Kate Miller
Mary Kate Miller
Mary Kate Miller is a writer based in Chicago, IL. She specializes in covering finance (personal and business), investing, and real estate. Her mission in life is to give readers the confidence and the knowledge needed to grow their wealth by making financial topics more accessible. When she's not writing about topics like business loans, you can find her playing armchair financial advisor to the Real Housewives.


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