However, there are millions of people, many of who are small business owners, who make too much money to qualify for a stimulus check, but they still need a boost to their finances. If you fit into this category, The Rules of Thumb blog from MoneyThumb would like to suggest you check into getting a hard money loan.

Below are the facts about who will qualify for the stimulus payout, which is said to be arriving in bank accounts as early as this weekend:

The full $1,400 goes to single people earning up to $75,000. But it phases out quickly after that and is completely phased out for those earning more than $80,000.

Full payment of $2,800 goes to a married couple filing a joint federal income tax return earning up to $150,000. The phaseout begins after that and ends at $160,000.

If you know you aren't going to qualify for this stimulus and you haven't yet heard of hard money loans, we wrote this post, Understanding Private Lenders and How They Work, explaining in detail what a private lender is and what they can offer. Hard money lenders are one facet of the private lending niche, and they fulfill a legitimate and essential service, providing fast, asset-based loans. These loan providers are distinguishable from traditional banks in that the lenders use their own funds.

Now that you understand what hard money lenders are, your next question may be why you should use one. The short answer is time. In the business world, time is money. From a business perspective, the faster that you can finance and close a deal, the faster you can turn to the next project on your itinerary—the more deals you complete, the healthier your bottom line is when it’s all said and done.

Because hard money lenders do not conduct extensive background checks on applicants, loans can be approved in a matter of days as opposed to weeks. This makes them particularly useful for small business owners. On the opposite end of the spectrum, normal banks can take as long as 30 days to approve your loan.

Whereas traditional financing is premised on the creditworthiness of the borrower, hard money loans are asset-based, meaning the underwriter evaluates the viability of your assets and their inherent worth or potential to produce a reliable revenue stream. This unique form of underwriting gives hard money lenders increased flexibility when it comes to the specific terms and conditions of the loan itself. Even hard money loan payments can be renegotiated in certain situations. The application process for a hard money loan is also much less of a hassle. While these lenders do take your credit score into account, they focus their attention on your assets and ability to repay the loan.

2021 is shaping up to be an active year for hard money lenders and businesses in general. Make sure you take full advantage of the favorable conditions by having the funding you need when you need it in order to accomplish all of the resolutions you made in January! A hard money loan may just be the answer you need.

If you are a hard money lender reading this post and have yet to try out our fantastic product, PDF Insights, now is the time to request a free, live demo. So many lenders use PDF Insights to make quicker and better-informed lending decisions that if you aren't doing so you are missing the boat. This product instantly reconciles bank statements, speeds up your customer onboarding, mitigates credit risk, and standardize your credit approval process.

The post Didn't Qualify for 3rd Stimulus? Consider a Hard Money Loan appeared first on MoneyThumb.

So first let's go over exactly what PPP loans are. As part of the US government stimulus package resulting from the coronavirus pandemic, $350 billion was allocated toward PPP loans to help save small businesses. Millions of businesses were forced to close their doors by government order to help stop the spread of the virus, thus the origination of PPP loans. Below is an explanation of PPP loans from the US treasury department. Although this information is designed for small business owners, it is imperative that a private lender hoping to make PPP loans understands the basics:

SMALL BUSINESS PAYCHECK PROTECTION PROGRAM

The Paycheck Protection Program provides small businesses with funds to pay up to 8 weeks of
payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and
utilities.

Fully Forgiven

Funds are provided in the form of loans that will be fully forgiven when used for payroll costs,
interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the
forgiven amount must have been used for payroll). Loan payments will also be deferred for six
months. No collateral or personal guarantees are required. Neither the government nor lenders
will charge small businesses any fees.

Must Keep Employees on the Payroll—or Rehire Quickly

Forgiveness is based on the employer maintaining or quickly rehiring employees and
maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if
salaries and wages decrease.

All Small Businesses Eligible

Small businesses with 500 or fewer employees—including nonprofits, veterans organizations,
tribal concerns, self-employed individuals, sole proprietorships, and independent contractors—
are eligible. Businesses with more than 500 employees are eligible in certain industries.

If you are wondering whether as a private lender you are eligible to offer PPP loans to borrowers, read this information fact sheet for lenders, also from the US treasury department. The main criteria are that you must be certified as a lender by the Small Business Administration. But that is not a problem because here is the application to become an SBA certified lender. If you meet the following requirements, as listed on the application, you will qualify:

Lender Eligibility Requirements

Depository or non-depository financing providers may be eligible to participate as lenders in the
Paycheck Protection Program if they meet the criteria described in the attestations below.

Lenders must attest to all of the statements in either Group A or Group B below.

Group A. Lender attests that it:

Is a depository or non-depository financing provider; AND Lender originates, maintains, and services business loans or other commercial, financial receivables or participation interests; AND Has a formal compliance program relating to, e.g., auditing and compliance with applicable laws; AND Applies the requirements under the BSA as a federally regulated financial institution, or the BSA requirements of an equivalent federally regulated financial institution; AND Has been operating since at least February 15, 2019; AND Has originated, maintained, and serviced more than $50 million in business loans or other commercial financial receivables during a consecutive 12 month period in the past 36 months.

Group B. Lender attests that it is:

A service provider to an insured depository institution; AND Has a contract to support such institution’s lending activities in accordance with 12 U.S.C. § 1867(c).

Once you determine you are qualified to become a PPP lender, you can begin making loans. However, time is really of the essence, since of the $350 billion allocated for PPP loans, $250 billion has already been claimed. But don't be disheartened, there is already plans being made to provide another $250 billion in the next stimulus package for PPP loans.

If you still have questions about making PPP loans as a private lender, leave a comment below and we will help you find the answer. We would really appreciate it if you would share this blog post on your social media page so that everyone you know can become educated about PPP loans, especially your private lending peers.

The post Can Private Lenders Offer PPP Loans? appeared first on MoneyThumb.

However, our mission in this blog post is to offer hope for those of you who are experiencing financial woes as a direct result of the Coronavirus. So many businesses have been forced to close their doors as a result of government-issued orders as a way of trying to protect people from becoming infected. People are being forced to either work from home or have lost their jobs completely.

According to a 2018 U.S. Chamber of Commerce survey, one-third of businesses with fewer than 500 employees had no funds for unexpected expenses, with newer businesses, retailers, and companies owned by women being the most likely to not have a financial buffer. “There is not an industry we haven’t heard from within our membership in talking to us about the devastating impact this is having on their business,” said Holly Wade, director of research and policy analysis for the National Federation of Independent Business. “The longer this drags out obviously the more devastating this will be for the small business community,” she said. “The business owners who we’ve heard from across the country, they are in immediate need of a cash infusion to help them get through this crisis.”

One good thing to come from this financially is that the IRS tax deadline for Americans has been extended for 90 days, from our normal April 15th until July 15th. A second promising thing to come out of this disaster is that the US government is working on a stimulus package to help relieve financial stress from both businesses and individuals.

A third good thing is how private lenders are going to shine during this time by offering quick relief to both small businesses and individuals. Nothing has changed when it comes to getting a traditional bank loan, and with businesses having to shut their doors and people laid off, getting a traditional loan will be harder than ever. It is still a very exacting, narrow, and slow process, and under the circumstances, most loan requests will likely be denied. Business owners and consumers will, therefore, be turning to private lenders to help them make it. A loan from a private lender can happen quickly, doesn't require a great credit score, and can often be handled strictly online.

If you are thinking a private loan might be something you need to carry you through financially during this Pandemic, either as a business person or consumer, read our blog post titled Tips for Finding Legitimate Lenders for Short-Term Loans.

We care about our blog readers and our loyal customers who use our PDF financial file converters, as well as all our fellow human beings. The Rules of Thumb blog from MoneyThumb would like to point out that as you know, we are a very resilient species, as is our planet. Mother Earth is being given time to rest and heal. People are spending time with their families, even if it was forced upon them by social distancing, school closing, and city lockdown. The canals in Venus, Italy, which have never before been clear, are now see-through sparkling. Dolphins are visiting there for the first time ever. Carbon emissions are down since people are driving far less. The air is cleaner in general. Just try to keep the faith with a positive attitude, follow common-sense guidelines to keep you and your family safe, and know that we will get through this and come out on the other side even better than we were.

The post Private Lenders Will Play Huge Role in Coronavirus Financial Recovery appeared first on MoneyThumb.