SBA-PPP “Forgivable Loan” Update For Mosdos And Businesses Owners: From Ira Zlotowitz, President Of Eastern Union

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RUSH ON SBA-PPP LOANS MAY DIMINISH FUNDING

The Small Business Administration (SBA) is now offering “FORGIVABLE” Paycheck Protection Program (PPP) loans to help businesses impacted because of the COVID-19. Thousands of loan applications are pouring into the SBA from banks all over the country, and SBA-PPP loans are starting to get approved.

The biggest risk appears to be that the SBA will run out of the $350bb in funding — so the clock is ticking and time is of the essence.

My advice to every Rosh HaMosod and business owner is simple: If you deal with a bank that is providing SBA-PPP loans, and that bank is taking applicants, GO DIRECT ASAP. If you do not have a relationship with a bank, find a bank or broker offering SBA-PPP loans, and APPLY NOW.

HOW TO APPLY FOR & EXPEDITE YOUR LOAN APPLICATION

If you want the expert brokerage team at Eastern Union help you apply for a SBA-PPP loan, through our partnership with Cross River Bank, here is what you must do to quickly begin the process:

  1. VISIT CROSSRIVER.COM/PPP AND START THE APPLICATION
  2. ANSWER “YES” TO THE QUESTION “IS AN AGENT HELPING YOU FILL OUT THIS APPLICATION”
  3. TYPE IN THIS AGENT CODE: 4530

[NOTE: THIS AGENT CODE IS FOR EASTERN UNION TO EXPEDITE AND OVERSEE YOUR APPLICATION PROCESS. IF YOU DO NOT PUT IN THE AGENT CODE, YOUR APPLICATION WILL NOT BE EXPEDITED BY EASTERN UNION!]

  1. SUBMIT THE APPLICATION ON CROSS RIVER BANK PORTAL

WHY APPLY THROUGH A PREFERRED BROKER LIKE EASTERN UNION?

You should strongly consider using a Preferred Broker like Eastern Union. In addition to the fact that THERE IS NO COST TO YOU FOR USING USE A BROKER LIKE EASTERN UNION FOR THIS LOAN PRODUCT, there are many valuable benefits that the brokers at Eastern Union can provide.

Benefit A: Your loan application files submitted through Eastern Union will rise to the top of the list and be expedited for quicker processing, resulting in you obtaining funds faster.

Benefit B: You will be able to reach out to me or any of the 100+ loan professionals at Eastern Union to answer questions pre-and-post application for status updates.

Benefit C: You will have a loan expert at Eastern Union available to personally help you fill out the application if you find it confusing or complex.

ONLINE RESOURCE FOR ALL YOUR SBA-PPP LOAN QUESTIONS

If you have questions or want to learn more, visit Eastern Union’s SBA-PPP website at SBA-PPP.com or simply email our loan advisors at ppp@easternunion.com.

Don’t plan on using Eastern Union for your SBA-PPP loan? That’s alright — please feel free to send Eastern Union your questions anyway. We are here to help Mosdos and businesspeople get through these challenging times.

On behalf of Eastern Union, I look forward to helping you obtain the SBA-PPP funding you need. Stay healthy, stay safe, and stay positive!

Ira Zlotowitz

President | Eastern Union Funding

Mobile: (917) 597-2197

Email: Iraz@easternuc.com

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14 Comments On "SBA-PPP “Forgivable Loan” Update For Mosdos And Businesses Owners: From Ira Zlotowitz, President Of Eastern Union"

All opinions expressed below are user generated and the opinions aren’t provided, reviewed or endorsed by any advertiser or DansDeals.

Dfwjon

Agents will be paid 1% of the loan amount by the lender. Bank will get 5% for any loan under $350k. In many cases an agent can help you get organized and it doesnt cost you more, best of luck to all.

Joe

I am suspicious- all banks are limiting their loans to customers, presumably because it doesn’t ‘pay’ for them to manage these loans. Why is this bank actively seeking non-customers? Not trying to be negative here- just trying to understand?

dfwjon

It can be profitable to originate these loans and then sell in the secondary market. If a bank can collect initially 5% of your loan amount in one month and sell it say 90 days later, they just effectively earned a 20% time adjusted return on funding your loan for a 90 day period. In this case the bank does not tie up all their funding for the life of the loan and it facilitates capital access to non-customers. Another point is that the interest rate on the non-forgivable portion of the loans was revised up to 1% as I understand to facilitate this. Even if a bank cannot sell the loan, they receive the 5% with no credit risk as it is forgivable/GOVT guaranteed. They may not be small business focused today, but can profit from the non-customer business owners at this point in time and so are participating in the program. Additionally, banks prefer to deal with known customers to speed up the process and for the BSA/compliance implications of vetting new customers.

marco

Does this go on your personal credit at all in anyway?
Is there a credit check in anyway? I know this is for small business, but i’m in the process of finalizing a mortgage and wanted to make sure it will know be associated it my credit.

dfwjon

PPP loans do not require a personal guaranty. However, it is possible that credit would be pulled. In some cases banks are automating the application process and credit scoring an applicant business is anticipated. They may very well score the owner of the business as well. I do not know and this may depend on the bank. That said I don’t believe these “grant/loans” will show up on your personal credit report down the road, though a credit inquiry may occur.

Leah

I just applied with this link.
Hope I didn’t just give my information to a scammer. Anyone verify if this is legit?

Dan

100% legit.

tzip

can you double check for me if ppp@easternunion.com is the right email address. It doesn’t seem to be working.

Small business

Is this only for the loan or also for very small businesses that would only qualify for the $10,000 grant?

dfwjon

this is for a “grant/loan” totalling 2.5 x average 2019 monthly “Payroll costs”, which include other items beyond salaries such as health care premiums and a few other items. Startups would use YTD payroll costs. The $10,000 grant is called an EIDL loan and is only provided if you mark the checkbox for an expedited advance on that application. Also you cannot have an EIDL loan for the same ‘Purpose” as the PPP loan so consult with your SBA lender for additional guidance. It is advisable to apply for the PPP for the purposes of “payroll and utilities” and the EIDL loan purpose should be something else such as ‘rent, account payables’ for example. In this way you would not have overlapping purposes for the two different programs. This is of course unique for each applicant’s business.

Jake

Can you include payrol taxes and fees into the calculation?

YesThatsMe

It seems that taxes yes, fees not.

Dfwjon

State Taxes are permitted as part of the “Payroll Costs” calculation

David

The app doesnt seem to work now. Anyone else have that issue?
Also, if I already applied through the gov site, should I hold off on submitting through Cross River or apply?

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