The PPP loans were part of the CARES Act and provided businesses with loans designed to fund payrolls during the height of pandemic-related lockdowns. At the moment there is still about $130 billion left in the program.
For many small businesses, particularly those that are seasonal or reliant on the prompt payment of invoices to maintain their cash flow, having the necessary funds to cover expenses or fuel an expansion can be difficult. Short term loans can help these business owners grow by putting the working capital they need within reach. These loans can be used to cover payroll, fund new equipment or inventory, or invest in new ventures — almost anything that can enable a business to grow and expand, remain operational or boost profits over time.
If you’re in the market for a small business loan, you may be wondering whether you’ll qualify and if so, the type of interest rate you’ll pay. After all, small business loans are notorious for being more difficult to get approved for than, say, a personal loan. The Small Business Administration (SBA) is the most well-known source of small business loans, both short and long term, and offers low interest rates and a number of educational tools for business owners just starting out. However, the SBA loan application process requires a lot of documentation and takes a long period of time. In many cases funds are disbursed two to three weeks after the application has been approved. In some cases, a business owner may need the funds sooner than that.