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How to Apply for a Business Loan During the Pandemic?

The coronavirus is having a significant impact on businesses across the country.

It’s not just the businesses that are most directly affected by the pandemic like those businesses in the service sector – it’s everyone.

The economic downturn is understandably increasing the need for business loans across the country.

It’s also changed the business loan landscape significantly, as the government is providing more loans for businesses that have been affected by the pandemic.

Unfortunately, at the same time, the banks and businesses you might have been able to go to before the pandemic might be less likely to offer a loan now, thanks to the increased risk associated with the pandemic.

There is some good news, you can still apply for a business loan despite the pandemic.

Whether you need the load because of the pandemic specifically, or just because you’re reaching the next phase in your business growth plan.

Prepare for the Loan

One thing the pandemic hasn’t changed is that your business should carefully prepare before applying for a loan.

Being prepared makes it a lot more likely that your loan application will be accepted.

Preparation can also help you anticipate and answer any questions about your loan, which also improves your chances.

If you’ve never filed for a business loan before or would like some assistance with preparing your loan application in these unusual circumstances, consider contacting Become.

Their mission of helping businesses includes guiding businesses through the loan process to help them get the resources they need and the best possible deal at the same time.

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To prepare you should get credit report for free, gather financial documentation, and consider what collateral you can provide on the loan.

Having this information handy will make filing your application much easier.

You should also carefully consider different loan requirements with your credit score and other financial information in mind. Always make sure you’re eligible for a loan before you apply.

Consider Reasons You May Need The Loan

If you have been affected by the coronavirus pandemic, you may be eligible for a different kind of loan that may have more favorable terms than a standard business loan.

If you’re applying for a loan to replace lost cash flow, cover business overhead, making payroll, or even updating your marketing plan, you may qualify for a pandemic-related loan.

Even if you would have applied for a loan around this time without the pandemic, you should consider whether your business might qualify for a pandemic relief loan since those resources are often available at less upfront cost to you.

Where to Apply

There are still plenty of SBA loans available, so if you don’t qualify for – or don’t want – a pandemic relief loan, you can apply for a small-business loan as normal.

You can also apply for emergency assistance loans through the SBA if a state of emergency has been declared in your area.

Banks and traditional lenders are also still an option. Just be prepared that they may ask for more collateral or other assurances on the loan since the market is in a downturn and is a little more volatile at the moment.

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You may also want to consider applying for a loan under the Payment Protection Program, especially if you’re trying to meet payroll while your business has been affected by the pandemic.

The more favorable terms on these loans can make operating your business easier, as long as you use the loan to cover payroll.

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