Financial News & Resources

Applying for a USDA Loan With a A Criminal Record- May 12, 2022. This post is a part of Collateral Consequences Resources Center's (CCRC) Fair Chance Lending Project (FCLP), and was prepared by students from Yale Law School’s Community Economic Development Clinic, which is working with CCRC on the project. The FCLP promotes greater access to government-sponsored loans to justice-impacted small business owners and managers, particularly within the Small Business Administration loan guarantee programs. 

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Federal policies block loans to small business owners with a record. Ausgust 2, 2021. 

 

The Biden-Harris Administration Increases Lending to Small Businesses in Need, Announces Changes to PPP to Further Promote Equitable Access to Relief.

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Here are the facts that you need to know: 

 

Priority Window for Business Owners with Less than 20 Employees: The Biden-Harris Administration will now open up a two-week period starting Wednesday Feb 24th where businesses with less 20 employees will have exclusive access to the application portal. 98% of all small businesses have 20 or fewer employees and this open period is potentially a lifeline for businesses who remain vulnerable.

 

Better Serve Self-Employed/Sole Proprietors: Going forward, self-employed individuals will use gross income to calculate the PPP loan amount. Additionally, the Biden-Harris Administration has set aside $1 billion for self-employed/ sole proprietors located in low- and moderate-income (LMI) areas.

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Support for Second Chance Small Business Owners: The Biden-Harris Administration has taken the bipartisan step to allow some small business owners with prior criminal records to apply for PPP funding. This will open funding to business owners who have turned their lives around, started a small business, created jobs, and contributed to their communities.

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Exempt Defaults on Student Loans: Business owners who are behind on their federal student loan payments will now be eligible for PPP loan forgiveness under President Biden’s changes. Initially, business owners who were delinquent on federal student loans could access PPP funds, but could not receive the loan forgiveness, meaning they had to pay it all back.

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Clarification for Small Business Owners with Visas or Green Cards: The Biden-Harris Administration clarified that residents who do not yet have a Social Security Number or Employer Identification Number can apply for PPP funding using their Individual Taxpayer Identification Numbers (ITINs).

This new modification prohibits lenders from denying PPP funding to business owners who use ITINs to pay their taxes. Click here to read more.

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Northeast Illinois- WBDC provides loans to small businesses in Northeast Illinous that otherwise cannot get a loan from a bank. Loans are targeted towards businesses with less than $1 Million in annual revenue. Businesses, including start-ups, may be eligible regardless of time in business, or size of business.

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• WBDC originated loans up to $50,000 for established businesses and $25,000 for startups

• Repayment terms from one to five years

• Financing available for equipment purchases, inventory, supplies, or working capital

• No application fee

• No prepayment penalty

• Click here for more information on their direct lending program for businesses located in Northeast Illinois.

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Chicago- Kiva US offers loans ranging from $1,000 to $15,000 that are 0% interest and $0 in fees, unlike funding from traditional lenders, other microlenders, or other crowdfunding platforms. 

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• Leverage your personal and Kiva’s online network to fund your dreams

• Finance your business with 0% interest

• No minimum credit

• Terms up to three years

• Utilize WBDC resources to prepare and market your campaign

 

Questions? Connect with Kiva's Capital Access Manager, Gabriella Bomben at chicago@local.kiva.org

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