What You Need To Know Before Applying For A PPP Loan With Multiple Lenders
When it comes to getting a Rapid Covid-19 Relief LoanIt’s worth covering your bets and applying to different lenders, but it can get you in trouble with law enforcement.
Having multiple lenders applying for a government loan on your behalf will trigger a fraud alert, says Ami Kassar, Inc. columnist and founder and CEO of MultiFunding, a small business loan advisor. You can’t get more than one loan under the $ 349 billion paycheck protection program.
But that doesn’t mean you should only apply to one lender. The chaos of the program deployment as well as the fact that different banks have deployed different resources and processes to cope with the influx of these loans, it may be necessary to apply to multiple lenders.
Kassar suggests that if you go this route, just be sure to ask for a guarantee that lenders will contact you before submitting your case. This way you can immediately withdraw your other requests.
Last week, the US Small Business Administration announced that financial institutions are required to notify the police if they detect fraud, money laundering, terrorist financing, the misuse of financial institutions or other criminal acts. And being accused of fraud will most likely hamper your ability to get a loan in any form. Avoid other potential abuses as well. The needs of business owners are likely to increase as the crisis continues, and this is sure to increase. attract fraudsters.