Can I choose Kabbage as my PPP lender? A lot of people ask this question a lot. If you are on this table then this article is definitely for you. Although, a lot of people know about the PPP loan from Kabbage many people do not know about it. Kabbage is a financial company that offers small businesses and customers automatic loans. However, Kabbage has shifted its focus to PPP (personal paycheck protection) to give help to consumers and small businesses that are struggling during the Covid 19 outbreak. Kabbage is stepping in as a source for consumers or small businesses that want to get PPP loans.
Kabbage is the best for small business traders who are eligible for PPP loans but are struggling to get them through the banks. Although, not all financial companies and institutions approve to offer PPP loans yet, and many banks that approve are doing so for their customers. While some are placing strict limitations on who can apply. If the strict limitations have stopped you from applying for the PPP loan, then Kabbage could be the solution to the loan application. Do you want to know more about the PPP loan from Kabbage? Then follow this article to the end.
Advantages of Applying For Kabbage PPP Loan
There are lots of advantages that come with applying for a PPP loan through Kabbage. Below are some of them, check them out. It might help you on why you should apply for a PPP loan through Kabbage.
- You can apply for the PPP loan even if you are not currently a kabbage customer- kabbage is available to all eligible business, which gives you a place to reach out to if your bank or financial company is not able or making it hard to apply
- You can get approved for the PPP loan very fast – after submitting your application online, kabbage can tell you immediately if your business is eligible for PPP loan and how much you can get. You can ask for the cash as soon as you are approved for the loan. Kabbage will send the money to your bank account after five business day of your request.
You can now see that there are benefits that come with applying for a Kabbage PPP loan unlike the banks or other financial companies/institutes.
Cons of Applying For a PPP Loan Through Kabbage
Everything that has an advantage will surely have a disadvantage and Kabbage is not an exception. The below are some of the disadvantages of the Kabbage PPP loan. Check it out.
- You can only receive funds up to $2 million – according to the Cares Act, small business owners can only get or receive the lesser $10 million or 2.5 times their average monthly payroll. However kabbage is the only one who is able to process and give ppp loans of 2 million or even lesser
- It is not guaranteed the money will not run out – just like every other financial company, kabbage cannot guarantee you be approved for a loan before the cash runs out. Small business owners can apply for PPP loan for a limited time that is why it is advisable to apply for early to increase the chance of receiving the loan.
Nevertheless, as a small business owner, it is very advisable to receive a PPP loan from Kabbage. Although there are few consequences or disadvantages, it should not stop us from applying for a loan for our businesses through Kabbage.
Requirements Needed to Apply For Kabbage PPP Loan
To apply for a PPP loan via Kabbage you must gather necessary information before starting the application process. The below are what Kabbage said their applicants should come prepared with.
- Government ID – the front and back
- The monthly payroll report
- Bank account and routing number
- The business starting date
You can also come along with the below if applicable
- Economic Injury Disaster Loan Statement
- Medical insurance payment verification
- Documentation confirming retirement benefits.
The remaining documents you need depend on whether you are a self-employed or sole proprietor and the requirements listed on the Kabbage site.
Kabbage PPP Loan Application
The Kabbage loan application process is very easy and simple. Do you want to apply for a PPP loan through Kabbage? Not to worry. The below are the guidelines on how you can do that.
- Visit the Kabbage website online
- Click on the kabbage ppp loan page
- Click on apply now to start the process
- Submit your required information
- After sometime kabbage will tell whether you are qualified for the loan and how much you can receive
- You can now accept the loan by providing your bank information
- You will receive the funds via direct deposit.
Fees are not required when applying for loans through Kabbage. SBA requires that lenders compensate financial agents like Kabbage. So do not worry because Kabbage makes its money from partnerships with the banks and not from customers or business owners.