UPDATE: Congress has passed a bill which will add $310 billion to the Payroll Protection Program. There is still time left to apply through Fundera.
Though funds for the SBA’s Payroll Protection forgivable loan program ran out last week, some banks and lenders have continued to accept applications with the expectation that the government will refill the cupboard, so to speak. One of the leading online lenders to do this has been Fundera. They are actively working with banking partners to submit applications if and when additional stimulus is provided by the government.
While Fundera advises customers to check with their local bank first, they say they have expanded their lender to network so they can more adequately address demand once funding is available.
Fundera’s application for PPP loans is better and more user-friendly than many banks, some of which are ill-equipped to process applications online. It’s no surprise that Fundera, as an online platform, gives customers a better experience.
How To Apply For A PPP Loan with Fundera
Fundera makes it simple for business owners to submit their PPP application. You can click here to begin the process.
On their homepage, they have a “Start Your Application” button. Once clicked, you’ll be taken to a login or create account page.
Everything is straightforward. You’ll be asked to submit basic business information, including EIN number (or SSN for self-employed and independent contractors), number of employees, and monthly payroll costs.
Payroll costs are the key with the PPP. They include salaries and wages to W-2 employees, and self-employment income to business owners. It does not include payments to independent contractors, but they can apply for themselves if they are negatively impacted by the Coronavirus.
For now, Fundera will collect all of the information needed for the PPP application. After that, if more funds are added to the program, they will work to submit the app to banking partners, including Cross River Bank and First Home Bank, to process the loan.
Once approved, customers will receive an e-tran number from the SBA confirming their loan.
Fundera’s partner lender will handle process the loan and send funds to the business owner’s bank account.
There is no cost to use Fundera, which receives fees from its banking partners.
The Payroll Protection Program
We’ve put together a detailed guide for the Payroll Protection Program, including how to apply and who is eligible.
In short, the PPP is meant to provide payroll relief to small businesses with under 500 employees to cover payroll for two months. Applicants can apply for 2.5 times their monthly payroll costs. If the funds are used for that purpose (meaning the business maintains or rehires its workforce through the end of June), business owners can apply to have the loan forgiven. Funds used for anything else will generally come with 1% interest and need to be paid back within two years.
Since the program is fully-backed by the Small Business Administration, terms are the same regardless of lender.
Does Fundera process the loan itself?
No. Fundera is an online lending partner and works with banks to process loan requests. They bring value through a superior online experience that many banks are unable to offer customers.
Is there any difference in applying through Fundera or a regular bank?
PPP loan applications submitted through Fundera have no practical difference from those submitted to traditional banks. The terms are the same for customer. There may be some benefit to using a platform like Fundera because it offers a superior user experience and is able to work with multiple banks to process requests.
Is there any fee for using Fundera for PPP loans?
Fundera does not charge customers any fees to process PPP loan applications. They are paid by banking partners, who are in turn paid by the SBA to process PPP loans.
How long does it take to receive funds?
Fundera says it is working quickly to add lenders to process PPP applications. Depending on demand, PPP loans can be processed in a few days or a week, but the funds are only available on a first-come, first-serve basis and not all applicants are guaranteed to receive the funds.