COVID-19 BUSINESS RESOURCES (SPONSORED)
As COVID-19 continues to disrupt companies across the nation, numerous small businesses have turned toward the Paycheck Protection Program (PPP) for relief. However, while the program has proven immensely popular among small businesses, banks have been overrun with applications — creating a roadblock for small businesses to receive the funds at a time when they need them the most.
This is an issue Benchmark Loan Partners has worked to rectify for its clients. Benchmark was founded by two career bankers and commercial lenders to assist small businesses in obtaining access to essential loans and credit facilities. Benchmark specializes in the use of lending programs administered through the U.S. Small Business Administration to find optimal solutions for its clients through a network of local and national lenders. This SBA experience has been particularly useful in helping businesses in applying for PPP loans.
Many small businesses simply do not know where to begin when it comes to applying for SBA-backed loans, including the PPP. Benchmark has been able to leverage the experience of its founders to guide small businesses through the intricacies of the application process. Small business owners that have difficulty getting loan requests approved appreciate the help that Benchmark offers in crafting the financials and credit requests, as well as, in finding the right lender and financing terms.
With the onset of COVID-19, Benchmark quickly expanded into servicing the PPP as well. Many banks have been flooded with requests, while others only accept applications for current customers, leaving many small businesses to navigate the application process on their own. Thus far, Benchmark Loan Partners has worked with a number of banks, CPAs, and other advisor firms to secure $3 million in PPP funding working through local and out-of-state banks for small businesses otherwise unable to access the program.
The PPP comes at a critical time for many businesses providing a lifeline for payroll, rent, mortgage interest or utility expenses during the current shutdown in the economy. Perhaps the most attractive part of the PPP is that the loan will be forgiven if businesses retain employees during the covered period and allocate the PPP funds to payroll and other approved expenses.
Why use a broker?
Like many financing options, commercial loans through the SBA are complex financial instruments that take time to understand. Beyond the standard complexity of the loan application process, each program through the SBA features its own rules and requirements. From there, each individual bank layers its own internal rules and processes on top of those from the SBA. These nuances can create a situation where small businesses are spending a great deal of time researching various SBA processes and application processes.
Each bank approaches the SBA program differently. Some banks opt to use the SBA program sparingly, while others are more aggressive. Some banks shy away from funding startup ventures and prefer lending to more established businesses, while others are open to entrepreneurship. Even within an individual bank, preferences and appetites for risk tolerance vary between individual loan officers. At Benchmark Loan Partners, we have strong relationships with local financial institutions and loan officers and can help you find the right situation. Ultimately, securing an SBA loan largely comes down to getting the application in front of the right person. Choosing a business loan brokerage service helps save small businesses the time and treasure it takes to understand this maze of rules and preferences and allows them to focus on running their day-to-day operations instead.
Once the best lender is identified, Benchmark Loan Partners works closely with small business owners to craft a loan application highlighting the strengths of their organization. But our work does not stop there. Benchmark continues to guide small businesses through the loan process and through negotiating the terms of the loan. While involving a middleman in your loan application may seem costly upfront, our goal is to save you both time and money in the long-run by securing the best loan for your business needs.
An option for lenders
Benchmark Loan Partners has also found a niche working with local banks and their loan officers to assist with loans that don’t fit at their institution. The lender may be restricted from making a loan for reasons other than credit quality, including their lending policies, loan concentrations, and other factors. Lenders may also be unable to process a loan due to excessive loan volume and they turn to Benchmark for assistance rather than pass the deal and the related relationship to a competitor.
Nimbleness in operation
Our firm was founded with flexibility in mind. As a middleman in the commercial loan space, Benchmark can react quickly to changes from the SBA. Our large network of banking contacts allows us to put your loan application in front of numerous lenders at once, minimizing the amount of time spent waiting for anyone individual bank to review an application. Moreover, our founders leverage their extensive experience in the banking industry to tailor your loan request to the best needs of both the borrower and lender. All of this is aimed at securing the best loan and terms for your business.
While the PPP is slated to wind down soon, we have every belief that similar loan programs will follow as the U.S. grapples with the economic fallout of the COVID-19 outbreak. And, when those programs arise, Benchmark will be well positioned to rapidly assist small businesses with the available SBA funding.
Benchmark Loan Partners was founded in November 2019 by Eric Seifert and Randy Ferris, who have a combined total of more than 70 years in the banking industry. https://benchmark4loans.com/