Lendio, a marketplace for loans that connects small company owners with a variety of lenders like banks, credit unions, and alternative lenders, is not a bank. As a result, it does not utilize a particular bank for PPP loans. Instead, it collaborates with a network of over 300 lenders, which includes both larger community banks and credit unions as well as well-known national institutions like Chase, Wells Fargo, and Bank of America. The purpose of Lendio is to assist small business owners in finding the ideal lender and to streamline the application procedure.
Depending on a number of variables, the application process for a PPP loan through Lendio could take a few days to several weeks. The first factor is the lender you’re matched with and how quickly they can handle your application. Due to their internal procedures and workload, certain lenders may take longer than others. The duration may also change based on how accurate and comprehensive your application is. The review and approval processes could take longer if there are gaps in the information or it is inaccurate.
As a marketplace for loans, Lendio generates revenue by charging lenders a fee for each loan application that is approved on their system. The cost averages from one to five percent of the loan amount but might vary based on the lender and the size of the loan. Because Lendio doesn’t impose any fees to the borrowers, you can utilize their service without paying anything.
Yes, SBA loans, including PPP loans, are still readily available. The PPP loan application process will now be open until May 31, 2021, the SBA recently stated. This implies that qualified small business owners who have not yet requested PPP loans or who have paid back their money may still do so. You can submit an application either through your bank or credit union directly or through an SBA-approved lender like Lendio.
Last but not least, a bubble loan is a form of loan that has modest initial installments but requires the borrower to make a lump sum payment for the entire loan total at the end of the period. People with bad credit or low income who cannot afford larger monthly payments are frequently targeted for this type of loan. It can be problematic, though, as the borrower might not have enough cash on hand to make the balloon payment when the term is up, which could result in default or foreclosure. Therefore, before signing any contract, it is crucial to properly read and comprehend the loan terms.
In conclusion, Lendio is a lending platform that assists small business owners in finding the ideal PPP loan by partnering with a network of over 300 lenders, including banks, credit unions, and alternative lenders. Depending on the lender and the thoroughness of your application, the approval timeframe may change. While borrowers can use their service for free, Lendio makes money by charging the lenders a charge. Up to May 31, 2021, SBA loans, including PPP loans, are still accessible. Another sort of loan that can be problematic for borrowers is a bubble loan, which has modest initial installments but requires a lump sum payment at the end of the term.
Obtaining a $1 million business loan is not mentioned in the article about Lendio and PPP. Lendio, a marketplace for loans that connects small business owners with a range of lenders, might, nevertheless, have loan choices accessible for higher sums. To learn more about loan alternatives and eligibility criteria for a million dollar business loan, it would be advisable to get in touch with Lendio or one of their lending partners.
Lendio’s website states that there are no fees associated with using their PPP loan application services. The lender who eventually authorizes the loan may, however, impose fees in accordance with SBA guidelines.