13 Top COVID-19 Loans Reach-out

COVID-19 Loans Reach-out : With a stunning 36.5 million and counting Nigerians out of work because of the COVID-19 pandemic, there are a lot of people scrambling to pay their bills until they have a paycheck again.

Business owners aren’t doing any better. An estimated 100,000 small business in the world have permanently shut down because of the pandemic, according to study by the National Bureau of Economic Research.

That all adds up to a lot of people who are looking for financial relief from the coronavirus.

One lifeline – loans, whether they be for personal or business use – are an option, particularly if a quick recovering economy emerges.  Here’s where you can one.

See also: 5 Top Debt Relief Companies 

COVID-19 Loans Reach-out

1. Personal Loans

In a recent survey, 21% of those responding who were recently laid off said they plan to borrow money from family, friends or the bank.

That’s a lot of people looking to borrow money.

And there are ways to do it, even for those laid off. Borrowers need good credit and a source of income – the bank wants to be sure they can make payments. Income doesn’t have to be a paycheck, it can come from other consistent sources, like Social Security, a pension or alimony.

“Taking out a personal loan during a time of crisis can be a solid financial move, given you find the terms that meet your needs and fit within the long-term capacity of your finances,” said Jared Weitz, CEO and founder of United Capital Source Inc

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COVID-19 Loans Reach-out

2. Local financial institution

Those who are confident they can manage a loan should first check with the local financial institution that they have a relationship with. Credit unions are a great option for members looking for a loan. Many have good deals for members, particularly if the credit union is tied to a business or industry, and the borrower is still drawing paycheck.

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COVID-19 Loans Reach-out

3. Online Loan Marketplaces

Another place to look for a loan is online loan marketplaces. Potential borrowers fill out an application and a variety of lenders make a pitch, offering a credit limit and rates.

Some of the most popular are Credible.com, Experian’s Credit Match and Lendingclub.

If looking online, be sure to go with a trusted source, and particularly avoid payday loans and other high-interest options that will sink you into more financial hot water. The Federal Trade Commission has information regarding bad online loan options on its website.

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COVID-19 Loans Reach-out

4. Home Equity Line of Credit

Those with equity in their home may be eligible for a home equity line of credit or a home equity loan. These are generally low-interest, but keep in mind you’re putting your house on the line if you can’t make the payments.

“Homeowners are currently living with historically high levels of equity and may be able to take advantage of a home equity loan or refinancing on their home,” said Weitz. “If you have recently experienced a loss in income or hit to your personal business, tapping into your home equity can provide the cushion needed to withstand shifts in the market and economy.”

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COVID-19 Loans Reach-out

5. 401(k) Hardship Loan

Those still working who have a 401(k) can look into a 401(k) loan or hardship withdrawal.

With the loan, you’re borrowing the money from yourself at a low interest rate. Payments are made monthly, usually over two to five years. The cap is usually $50,000 or half of the balance in your account. The biggest drawback is that if you lose your job before the loan is paid back, you have to pay back what you borrowed in 90 days.

Hardship withdrawal terms are up to the employer, and, as with the loan, if you lose your job the financial penalty can be great.

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COVID-19 Loans Reach-out

6. Loan Alternatives for Personal Debt

It’s a good idea to consider other options before borrowing money, personal finance expert and founder of LogicalDollar.

“If you’re considering a personal loan because you need money, but are struggling to repay what you already owe, you should seriously think about whether it’s the best option for you,” she said. “The way to get out of debt is not to take on more debt. So, if you’re in that situation, a better idea would be to focus solely on paying off your existing loans.”

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COVID-19 Loans Reach-out

7. Paycheck Protection Program

The Paycheck Protection Program has provided funding to more than 4.3 million businesses since the first round was approved by Congress March 27.

That round paid out $349 billion in less than two weeks, guaranteeing more than 1.6 million loans.

The average loan was around $206,000, with some large corporations getting millions, raising an outcry as small businesses got short-changed.

About 39 of those corporations, including Auto Nation Inc., which got $77 million, have returned the money.

The program was tweaked for the second round, and as of May 16, more than 2.7 million businesses were awarded loans, totaling more than $195 billion. The average second-round loan was $70,622.

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8. SBA Economic Injury Disaster Loan and Advance

The Economic Injury Disaster Loan is a long-time SBA program aimed at assisting agricultural-related businesses during a natural disaster.

The SBA is offering $10,000 advances to small businesses that does not need to be repaid.

That is considered emergency assistance and gives the business some help while the SBA goes through the overwhelming number of loan applications that came in because of COVID-19.

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COVID-19 Loans Reach-out

9. SBA Bridge Loans

SBA Express Disaster Bridge Loans are available to businesses with fewer than 500 employees that have an urgent need for cash while they are waiting for an EIDL

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10. Programs from State and Local Governments

A remarkable variety of local loan and grant programs for businesses have blossomed across the country in the wake of the pandemic.

Business owners who need financial help should start with their town or local Chamber of Commerce.

As well as their state government website.

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11. Amazon Neighborhood Small Business Relief Fund

Amazon’s program is for businesses in the Seattle area.

To be eligible for grants from the $5 million grant fund.

A business must have fewer than 50 employees and less than $7 million in annual revenue.

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COVID-19 Loans Reach-out

12. Facebook Small Business Grants Program

Facebook’s program is worldwide, and is awarding $100 million worth of grants and Facebook advertising credits to up to 30,000 small businesses.

On its website for the program, Facebook says it’s received an “overwhelming” .

Amount of applications from the U.S., and only a portion will get grants.

It says new resources will be announced soon.

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COVID-19 Loans Reach-out

13. GoFundMe Small Business Relief Fund

The fundraising site is running a fundraiser of its own, which began March 24 and as Sunday, May 17, was about $600,000 from reaching its $2.4 million goal. The money is being dispersed in $500 one-time matching grants to small businesses that have been hurt by a government-mandated COVID-19 business shutdown. It must be used to support employees or pay business expenses.

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