American loan center
Today, more than 70% of business owners across the United States have turned to the Paycheck Protection Program (PPP) – a loan process created by the federal government for struggling businesses to mitigate the economic impact. of COVID-19 – to help them keep their businesses afloat. President Biden recently announced revisions to the PPP to better target the smallest businesses in our country, specifically imposing a two-week period from February 24 during which only companies with fewer than 20 employees can apply. As we approach a full year of pandemic shutdowns and closures, more than 70% of business owners across the United States have turned to PPP for help to keep their businesses going. afloat.
By strategically focusing on small loans that support women-owned and minority-owned businesses, my company American Lending Center (ALC), a non-bank community lender, has provided over $ 152 million in relief funds. to companies in 49 states across the country exclusively under SBA programs. And while ALC has been able to have a dramatic impact across the country, in California in particular, ALC has funded more than 300 PPP loans, bringing an estimated $ 12.5 million to California’s small business ecosystem.
Unlike the national average loan size of over $ 100,000, SLA’s average PPP loan size was only $ 27,075 in 2020, with 89% of beneficiaries being minority or women-owned businesses and 60% being self-employed workers. Additionally, most first-time borrowers were funded within three days of their SBA ALS treatment.
ALC recognizes that small businesses make up over 99% of California businesses and employ nearly half of all working Californians. At 4.2 million, California has the most small businesses of any state, employing 7.2 million people and creating an estimated 215,000 jobs in 2019 alone. With such a huge impact, putting these businesses at the forefront of COVID aid is vital to protecting major street economies, especially minority and women-owned businesses.
Much of the bumpy initial rollout of PPPs was due to a backlog of applications at the big banks, leaving small businesses on the main street behind. Non-bank community lenders, including ALC, have stepped up to provide alternative sources of lending and have secured SBA expedited approval to receive PPP applications. Ultimately, by being intimately familiar with the local business landscape and effectively bypassing many bureaucratic hurdles that keep big banks from getting money out, we can quickly put essential funds in the pockets of business owners.
Especially for small businesses with limited resources and for many new immigrant communities, PPP loans can still seem unattainable. To combat this, ALC has developed an innovative new partnership program increasing access to capital for our most vulnerable US businesses through collaboration with multilingual CPAs and financial advisors. For many business owners for whom English is a second language, the PPP loan process can be too intimidating, leading to an increasing number of new immigrant businesses closing their doors. To effectively overcome this barrier to success, ALS ensured that language differences did not prevent the fulfillment of the American dream that so many people have come to the United States for.
In the midst of this uncertain time, one thing remains clear: tackling this pandemic and its economic fallout requires a concerted effort. As the private sector shifts to devote financial resources, supply chains and manpower to help better understand and control this disease, we continue to make significant strides in treating COVID-19 and the mitigation of the resulting economic benefits. At the American Lending Center, we have a long history of supporting the small business community and ALC will continue to act on the long held belief that small businesses and local entrepreneurs are the real engines of the American economy.
Find the ALC PPP Application Portal at: alcppp.com
Learn more about ALC at AmericanLendingCenter.com