Finances and Taxes

I Couldn’t Get a PPP Loan. What Do I Do Next?

Gusto Editors  
PPP Alternatives - What to Do If You Didn’t Get a PPP Loan - Gusto

As awesome as the Paycheck Protection Program (PPP) is (what’s not to love about employers getting more than double their monthly payroll costs to pay their teams, without having to pay it back?)—it’s run into some speed bumps.

The application process was hairy for some borrowers, others weren’t sure a PPP loan would actually help them—oh, and funds ran out within a couple weeks.

Thankfully, that last one has been remedied… but for how long? If you haven’t been able to take advantage of a PPP loan, either due to a denied application, long queues, or limited funds, here are the next steps you could consider.

I’m ineligible for PPP funding. / There are too many other applicants. / Funds ran out again. What other resources are available?

With a cumulative $660 billion in disbursable funds, the PPP is one of the biggest loan programs for struggling businesses right now—so it follows that it’s also the most popular. But that’s why bigger isn’t necessarily better in this case.

With so many businesses—including larger enterprise companies—flooding PPP lenders’ application queues, you may be better off looking for resources that are smaller but more focused for businesses like yours.

What to do next: Consider other sources, including the following:

Other SBA funding

The PPP isn’t the SBA’s only funding option. There are multiple other SBA loan programs with available funds for small businesses, like Economic Injury Disaster Loans, Express Loans, or Express Bridge Loans, to name a few.

Private resources

From Zapier’s $1 million small business assistance fund to Salesforce’s $10,000 small business grants to the $500 million Goldman Sachs SMB emergency loan fund, there are many options from the private sector to consider as well. Scroll through more private resources in our relief spreadsheet.

State and local relief funds

State governments, counties, and communities have come together to support their hardest hit neighbors with resources like Main Street support programs or crowdfunded business relief grants. Search for your state in our resource hub to see what’s available to you locally.

Regional banks

Beyond becoming PPP lenders, your local and regional banks may be providing additional pandemic support in the form of emergency financing, expedited loan approval, payment assistance or deferment, and more. Contact banks in your area or visit their websites to see what they’re offering.

If you’re still trying to get PPP funding but haven’t had luck yet, we have a few ideas for what you can try next.

What should I do if I haven’t heard back about my PPP application?

If you submitted a PPP loan application but have not heard back, it’s likely that your application is still in either your lender’s or the Small Business Administration (SBA)’s system.

It’s possible your lender had additional inquiries about your application—or that your application was partially or completely unprocessed before funding ran out on April 16. Many lenders only resumed processing applications after new funding was approved on April 24.

What to do next: Check on the status of your application. Some lenders are processing existing applications before any new ones, so this will likely get your loan processed faster than reapplying through the same or another lender. You can check your application status by:

  • Contacting your lender. Each lender will have its own guidance for the quickest way to get info about your application. They can also help you modify or cancel your application if needed. Note that the usual methods of getting in touch may not be available due to increased volume.
  • Contacting the SBA directly. Look up your nearest SBA office to get local assistance.

Pro tip: Have the documents you referred to when submitting your application handy in case your lender asks for the information again. If you used an online portal to submit your application, have your login details ready.

If my PPP application was previously denied, can I reapply?

It depends. If your application was denied because of an error, you can submit a new, corrected application. But if you were denied a loan because you did not meet PPP eligibility requirements, you’ll probably get the same result even if you reapply. 

What to do next: Once again, talk to your lender to understand the status of your application. Find out what you need to fix or if you have other options.

For example, if you have multiple businesses with different employer identification numbers, you may be able to apply for a PPP loan for another one of your businesses. There are some complicated rules for affiliated businesses based on total number of employees and industry, among other factors, and you may not be eligible for a PPP loan for one business if you’ve already received one for another.

Can I submit applications to multiple PPP lenders? 

Yes. You cannot get multiple loans, but applying with multiple lenders can increase your chances of getting funding.

The SBA will accept the first valid application it receives. Any other applications associated with your tax ID will be rejected.

What to do next: If you haven’t heard back about an existing application, identify additional lenders who are accepting PPP applications and apply with the same business information and tax ID. You can get started with our list of PPP banks and lenders or one of our lending partners.

Pro tip: Try submitting applications to smaller banks and lenders. Their queues may not be as jam-packed, and the second round of funding allocated billions of dollars specifically for smaller lenders in hopes that the funds would be disbursed to small business clients.


We still recommend applying for a PPP loan while funds are available. Paying your team and getting the funds forgiven is no small thing. But if you can’t get a PPP loan, don’t lose hope. There are dozens of other funding options created just to support small businesses.

In fact, we’ve compiled hundreds of them for you. And we’ll continue to surface the most useful resources we can find for business owners in our COVID-19 hub.

Our COVID-19 Small Business Resource Hub has legislation updates, advice, and support.

Updated: May 7, 2020

Gusto Editors
Gusto Editors

Comments

  • DAVID LABOVITZ

    Why don’t you suggest as an alternative the Employee Retention Tax Credit? That’s available directly through Gusto and can apparently provide substantial benefits.

    Reply

*Required fields

Your email address will not be published.

Back to top