Popular, INC. Small Business Loans

Popular, INC. does business as 'Banco Popular' in Puerto Rico and the Virgin Islands; it is a financial services conglomerate headquartered in Hato Rey, San Juan. This bank has been operational for 125 years in Puerto Rico and 52 years in the United States. Popular, INC. also offers many types of business loans, and we will discuss them in detail.

Paycheck Protection Program (PPP)

On 27 December 2020, a stimulus was passed by Congress to aid businesses. As a result, PPP loan applications were available till 31 March 2021, and all types of borrowers were also eligible for the loan.;

Background

The PPP loan is the component of CARES, and the SBA administers them. The sole purpose of the loan is to keep the staff of small businesses employed during this raging pandemic.

Under the PPP loan program, the loan amount is 2.5 times higher than the trailing twelve-month monthly average payroll costs of ten million dollars.

Loan Forgiveness

Loans are only considered forgivable if the businesses/borrowers meet the retention criteria and have used the funds for payroll, expenses, and mortgage costs, during the 8 to 24 week disbursement period. In that case, the loan interest rate will be 1%. Some PPP loans mature in two years while others mature in five years, and they require no personal guarantee and collateral.

Types of Loans offered by Popular, INC.;

1. Paycheck Protection Program (PPP)

On 27 December 2020, a stimulus was passed by Congress to aid businesses. As a result, PPP loan applications were available till 31 March 2021, and all types of borrowers were also eligible for the loan.;

2. Term Loans

This loan will help you cover all the financial needs of your business by offering either a short-term loan or a long-term loan. This loan will also enable you to expand your business, acquire other properties and businesses and refinance your debts.

3. Government-Backed Loans

Government offers financing through SBA, which makes it easier to access the funds for the borrowers. Popular, INC. is a preferred lender of the SBA.

4. Credit Line

Revolving finance that covers short-term working capital and operational needs of the business

Popular, INC. Interests, Fees, and Loan Options

12.PPP Loan Program;

13.Government-Backed Loans

14.Term Loan

15.Credit Line

What Lending Criteria does Popular, INC. Have?

Below is the basic lending criteria that all the banks follow:

Credit Score

Credit is the most important component of all types of businesses, whether they are small or large. Lenders will always analyze the business's credit score and then decide whether it can pay the loan or not. Therefore, the best way to maintain a healthy credit score is to pay your dues on time.

Credit scores can also be easily obtained from several agencies such as Equifax, Dun & Bradstreet, and Experian. Another way of maintaining a positive credit score is to have a low debt-to-income ratio. Lenders will not invest in businesses that don't have a good credit score.

Annual Revenue

Another important factor that the lenders will review is the annual revenue of the business. Most lenders will only lend to those businesses that have been profitable for the last two years or more. Businesses need to make sure that all the financial statements are accurate and up to date.

Lenders will also look at specific details such as the current account (current assets divided by liabilities) and ask for copies of bank statements and transactions. However, businesses will only be eligible for a loan if their cash flowing is growing.

Business Plan

A minority of lenders might not ask for a business plan, but most of them do, and businesses need to come with a clear and concise proposal. Usually, lenders require the business plan to know the purpose of the loan and discuss the business's stability.;

One of the main components of business plans is the resumes of managers and staff. However, despite having a clear business proposal, the lenders will still ask for proof of the staff's ability and relevant credentials and experience.

Collateral

Collateral is an essential requirement, and most lenders will not provide a business loan if it cannot give collateral. Collateral can be anything like equipment or property. The collateral will also decrease the risk for the lender as it will have an asset in hand, so if the company fails to pay the loan, the collateral can be paid to fund the damages.

The owner of the company needs to provide a personal guarantee and will also need to submit some essential documents:

Time in Business

Most banks are hesitant to lend loans to new companies that have been active for just a few months. Lenders cannot trust small businesses or startups that have just entered the market because they don't have a proper credit score and the cash flow is usually unstable. Banks will most likely lend to businesses that have been active for more than two years.

Loan Forgiveness Criteria

In Round 2 of the PPP loan program, the criteria for forgiveness were also revised. Under the new changes, the businesses/borrowers spent 60 % instead of 75 % of the loan on their business needs (payroll expenses, mortgage costs, rent).;

Eligibility Criteria for Paycheck Protection Program;

Following borrowers qualify for loan forgiveness during the 8 to 24 period of loan disbursement:

Loan Forgiveness Criteria

In Round 2 of the PPP loan program, the criteria for forgiveness were also revised. Under the new changes, the businesses/borrowers spent 60 % instead of 75 % of the loan on their business needs (payroll expenses, mortgage costs, rent).;

Popular, INC. Application

Following is the application procedure of all the banks that borrowers have to follow:

Before you apply for a loan, ensure that all your documentation is up to date. Also, organize all the documents properly, and if some essential documents are missing, contact the relevant authorities. Collect all the financial information about your business and pay all the dues as soon as possible.

Some additional Popular, INC. Loan Forgiveness Requirements:

If you received a PPP loan in 2020:

If you received a PPP loan in 2021:

Define Eligible payroll costs such as :

If your loan amount is <150,000 dollars, fill the following form:

If your loan amount is >150,000 dollars, fill the following forms:

Click here for more information and check out the website of Popular, INC.

Summary of Popular, INC. Loan Options

Popular, INC. offers several loans that are designed to cater to a specific need of the business. Below is a list of all the loans that Popular, INC. offers:

Popular, INC is a bank that is operational in both Puerto Rico and the United States, it is also a preferred lender of the SBA and offers various types of small business loans. Popular, INC also gives a detailed description of the procedure required for PPP loan forgiveness.

It is important to read the Loan forgiveness application details provided by Popular, INC. as they are crucial. Also make sure that you collect valuable data on Non-payroll expenses, as the bank will ask for them. Make sure all the requirements are in order, and up to date, if there are any concerns reach out to the bank or the concerned authorities immediately.

For more information regarding loans, learn more.;