BROOKLYN, N.Y., Jan. 6, 2021 /PRNewswire/ -- With a demand for a second round of federal Paycheck Protection Program (PPP) loans that will inevitably exceed supply, Eastern Union -- a national real estate finance company -- is urging pandemic-wracked small businesses nationwide to "get a head start" on the loan approval timetable by immediately pre-applying for the program.
Eastern Union helped more than 10,000 small businesses gain loan approval during the first round of PPP funding earlier this year. Faced with applications from millions of loan seekers, program funds were depleted within weeks of its April launch.
"By acting now, small businesses will get a valuable head start in this process," said Ira Zlotowitz, president of Eastern Union. "With millions of businesses applying for a finite pool of loan money on a first-come-first-served basis, only the swiftest have the chance to succeed."
Businesses can register through Eastern Union by visiting https://easternunion.com/ppp.
Eastern Union had been successful in brokering "Round A" PPP loans largely because the firm is partnering with a sophisticated lender that ranked third nationally in PPP loan volume during the program's first phase. Thanks to the lender's highly efficient loan processing capability, it managed a high volume of applications within a very short period.
PPP loans are made available through the Small Business Administration (SBA), which is expected to begin accepting formal loan applications within the next several days. Pursuant to SBA rules, Eastern Union arranges loan registrations at no charge to applicants.
"Businesses should start the process immediately, even if all their financial documents aren't ready," said Mr. Zlotowitz. He said loan seekers could then resume the application process at a later time. Applicants will receive timely updates that will help ensure that their application have been properly submitted to the SBA.
Eastern Union will share its PPP-related reimbursements with accounting firms, merchant cash advance companies, or other businesses that can tap into a referral network of 25 or more companies. These reimbursements originate from Eastern Union's partnership with lenders who receive reimbursement payments from the SBA for processing PPP loans. Interested firms can visit https://easternunion.com/partner.
Funded at $284 billion, the second round of PPP loans targets firms with 300 employees or less, unlike the initial round's 500-employee threshold.
Companies who applied during the first round and spent the funds they received may be eligible to take out a second loan if they can demonstrate a decline in quarterly revenue. And while first-round loans were capped at $10 million, this round's limit is $2 million. The program is still largely designed to cover 2.5 months of average payroll expenses, though some qualifying businesses -- such as restaurants, food service companies and hotels -- may receive up to 3.5 months of average payroll expenses.
About Eastern Union
Founded in 2001, Eastern Union is a leading national commercial mortgage brokerage firm employing more than 125 real estate professionals and closing $5 billion in transactions annually. Eastern Union leverages its relationships with banks and its marketplace knowledge to secure the best available rates. Active nationwide, Eastern Union is headquartered in New York, with branches along the East Coast.
The firm arranges financing for multi-state, multi-site portfolios and for smaller, single-property transactions. Its Multi-Family Group has reset market pricing by offering a quarter-point fee -- with no back-end fees -- for refinancing properties backed by Fannie Mae or Freddie Mac, transactions known as "agency refinancings." Its capital introductions are handled through Eastern Union's affiliate, Eastern Equity Advisors.
Eastern Union's free eCALC app instantly helps investors value and underwrite deals.
For more information, visit www.easternunion.com.
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SOURCE Eastern Union