Nearly 5 million small businesses have received a cumulative total of $518 billion in Paycheck Protection Program funding, as well as $135 billion in Economic Injury Disaster Loans, with an average loan size of $105,000 and $60,000 respectively. This may seem like a significant amount, but many businesses are running out of PPP and EIDL funding and are still unable to reopen or are operating at reduced capacity.

According to a survey by Goldman Sachs, about 84% of small businesses that received PPP funding will have exhausted their loan by the first week of August. The same survey found that:

• Only 16% of loan recipients are very confident they will be able to maintain payroll without further government relief
• 63% of small businesses say that less than 75% of their pre-COVID revenue has returned, and 60% say less than 75% of their pre-COVID customer base has returned
• 48% believe their business is prepared for another wave of COVID-19, but only 37% say their business can survive another wave if shutdown protocols are put into place again

If you're running out of funding, there are a number of reasons why you might have received less SBA funding than you applied for, including how lenders calculate how much funding your business is eligible for, other limitations with PPP funding, and loan caps.

Let's take a closer look at why you might not have received as much funding as you applied for and what you can do if you're running out of funding.

PPP is the most popular funding program for businesses struggling due to the COVID-19 pandemic-the weekly Small Business Pulse Survey conducted by the United States Census Bureau from April 26 to June 27, 2020 indicates that 75% of respondents applied for PPP funding, with just over 65% of businesses receiving funding.

However, there are some limitations to the Paycheck Protection Program that may have impacted how much funding you received, such as how lenders calculate how much you're eligible to receive, how PPP funding can be used, and who is eligible:

• How much are you eligible to receive? The amount of PPP funding a business is eligible for is calculated using the average monthly cost of the salaries of you and your employees. For sole proprietors, PPP is calculated based on your business's net profits. If you didn't receive as much funding as you applied for, it may be because the amount you requested did not coincide with your average monthly payroll costs.
• Loan forgiveness: One of the primary advantages of PPP funding is that these loans will be forgiven if used properly. In order to be eligible for PPP forgiveness, businesses were initially required to use at least 75% of their funding for payroll. However, many businesses have other expenses to cover, such as rent, personal protective equipment, and the cost of adapting to the changing business landscape, and may not have received EIDL funding or have enough cash on hand to cover these expenses throughout the pandemic. With the introduction of the PPP Flexibility Act, this minimum has been reduced to 60% to allow businesses more flexibility in how they use their funding.
• Who is eligible? Qualified businesses are eligible to receive one PPP loan in total. If you've run out of PPP funding, there are a number of funding options available to you.

While the SBA was initially authorized to provide grants up to $10,000 and loans up to $2 million, the agency publicly confirmed that grants were capped at $1,000 per employee and loans at $150,000 at a congressional hearing on July 1, 2020.

If you didn't get approved for as much funding as you hoped, contact your lender. PPP and EIDL funding are not provided directly by the SBA-this funding is actually provided by your lender and is underwritten by the SBA in order to reduce the risk of the loan. That means your lender is ultimately responsible for the amount you receive, so if you want to appeal your loan amount, you'll need to speak directly with them.

You may also wish to investigate alternative forms of funding. If you're running out of federal funding, there are a number of funding options available to you.

There are other SBA funding options available to businesses who have already received PPP funding, including Economic Injury Disaster Loans and 7(a) loans.

EIDL and other SBA funding can be used to cover any business expense, including money owing to suppliers, maintaining new cleaning and sanitation requirements, and personal protective equipment for your employees. While businesses are eligible to receive both PPP and EIDL funding, EIDL funding cannot be used concurrently with PPP funding to cover the same costs. That means you can't use PPP and EIDL funding for the same expense like payroll or rent.

The Employee Retention Tax Credit was created to incentivize business owners to keep employees on their payroll throughout the pandemic. If you received EIDL funding but not PPP funding, you are eligible for the Employee Retention Tax Credit. If you received PPP funding, you are not eligible for this tax credit.

Most states and municipalities are offering their own funding for small businesses impacted by the COVID-19 pandemic. Check with your local chamber of commerce, economic development office, and other non-profit groups that support small business in your area for more information.

Here is a complete list of state funding options.

Some industry organizations are offering grants and specialized support. If your business is affiliated with an industry organization, check their website for details.

Community Development Financial Institutions (CDFIs) are not-for-profit financial institutions that provide credit and financial services to disadvantaged areas, with a special focus on women and minority business owners-two groups who have been especially impacted by the COVID-19 pandemic.

A study conducted by the National Bureau of Economic Research found that the total number of Latino-owned businesses fell by 32% from February to April 2020 due to COVID-19. Similarly, Asian-owned businesses fell by 35% and women-owned businesses fell 25%. However, Black-owned businesses experienced the worst impact:

• Black-owned businesses fell by 41% from February-April 2020 due to COVID-19
• 34% of Black-owned businesses say less than 25% of their pre-COVID revenue has returned compared to 20% of businesses overall
• 28% of Black business owners believe they can survive another wave of the pandemic should similar shutdown protocols become necessary, compared to 37% overall

Many Black-owned businesses are sole proprietorships, don't have enough employees to qualify for PPP, or don't have an existing relationship with a lender, creating additional hurdles that may have prevented these businesses from accessing funds in the first round of PPP funding. The second round of PPP funding released on April 24, 2020 relaxed some of these requirements and channeled more funding to non-bank financial institutions in communities of color, but many businesses are still struggling.

If you fall into one of these groups and were unable to access funding from the SBA or didn't receive as much funding as you need, you may be able to secure the funding you need from a CDFI in your area.

Businesses are currently only eligible to receive one round of PPP funding. If you've run out of PPP funding or aren't eligible for other SBA funding, alternative online lenders like Bluerock Options may be a suitable option for your business. Alternative lenders offer a number of advantages for businesses impacted by COVID-19:

• Easier qualification criteria with less paperwork to gather
• Faster review and approvals, with approval in as little as 2-5 business hours and funding in as little as 1 business day
• No restrictions on how your funds are used-use them for payroll, inventory, or everyday operating expenses
• A variety of funding options are available to suit your business's needs, including merchant cash advances, invoice factoring, collateral loans, and business lines of credit
• Businesses with low credit can receive funding. Instead of focusing on your credit score, our Funding Advisors will review the overall health and potential of your business
• Businesses in high-risk industries can also receive funding

Many businesses who received PPP or EIDL from the SBA are running out of funding but have still not returned to their normal level of operations. If you've run out of federal funding, there are a number of options available to you, including:

• Other SBA funding
• Tax credits
• State and local funding
• Industry organizations
• Community Development Financial Institutions
• Alternative lenders like Bluerock Options

According to a survey conducted by the National Federation of Independent Businesses, roughly 75% of small business owners applied for a Paycheck Protection Program (PPP) loan and 40% of small businesses applied for an Economic Injury Disaster Loan (EIDL) before these programs were closed to new applicants on April 16, 2020. Of these applications, only 20% received PPP funding, and about 10% received an EIDL emergency grant.

If you applied for but did not receive federal funding through the SBA, there are a number of reasons why you might not have been approved. Rest assured that the SBA is not your only source of funding-there are still funding options available to you, including state and local funding programs and alternative lenders like Bluerock Options.

Understanding why your federal loan application may have been disapproved can help you determine what alternative funding will work best for your business. Before we explore additional funding options, here are some common reasons why you may have had trouble accessing federal funding:

The SBA doesn't actually provide funding directly-instead, it guarantees loans that are provided by SBA-approved financial institutions, including banks, credit unions, and microlenders. To access EIDL or PPP funding, you'll have to apply for funding through a financial institution that will then submit your application to the SBA.

Not all banks are SBA-approved institutions or participating in the SBA's funding programs. If your bank is not an SBA-approved financial institution or is not participating in the SBA's funding programs, you may have trouble accessing funding through this channel.

If your usual lender isn't an SBA-approved financial institution, you always have the option of working with another lender. However, due to the massive influx of funding applications, many financial institutions are prioritizing applications submitted by existing clients, and it may be difficult for new clients to submit an application.

PPP and EIDL funding are available on a first-come, first-served basis. When the first round of funding became available in March 2020, some financial institutions were quickly backlogged and unable to submit applications in a timely manner, leading to delays and disapprovals.

Federal funding is still available, so if your first application was rejected, there is still time to re-apply.

Make sure you have all of your paperwork together and that all of your information is up to date before you submit a PPP or EIDL application. This includes key documentation like your latest tax records and average monthly payroll costs.

PPP and EIDL funding were in extremely high demand when the program first launched in March-in fact, demand was so high that funding was exhausted within 13 days.

With a second round of funding announced on April 24, 2020, small businesses that did not qualify in the first round of funding are being encouraged to apply again. If you applied and were approved for PPP funding, you do not need to apply again.

Self-employed professionals were not eligible for PPP or EIDL funding till seven days after these funding programs were launched in March, and most of the funding had run out by the time these individuals were able to apply. With a new round of funding, it will be easier for self-employed professionals to access the funding they need to keep their business operational.

In order to receive PPP or EIDL funding, businesses must have been operating long enough to supply financial records that prove they were negatively impacted by the COVID-19 pandemic. That means you'll need detailed financial records covering at least 12 months of your business's operations. If you're a new business, you won't have this documentation and it may be difficult to get funding through the SBA.

Credit score is not officially considered a qualifying criteria for PPP or EIDL funding, but it's safest to assume it will be consulted while your application is being evaluated.

Demonstrating that you can maintain cash flow responsibly is even more important in a crisis like the COVID-19 pandemic-steady cash flow and strong cash management will show lenders that you know how to manage your business's finances and that you are more likely to repay your loan on time. If your business is unable to show that there was consistent or responsible cash flow management before the pandemic hit, this may be why your application was not approved.

If you did not receive PPP or EIDL funding, don't panic-there are still a number of funding options available to you, including other SBA funding, tax credits, state and local funding, Community Development Financial Institutions, and alternative lenders. Let's take a closer look at each of these options:

PPP and EIDL funding are the most popular options for businesses negatively impacted by the COVID-19 pandemic, but other SBA funding options remain available, including 7(a) loans. If your business's financials are strong but you applied late or were unable to access PPP or EIDL funding through your usual financial institution, you may be able to access other SBA funding now that financial institutions have worked through the worst of the backlog.

Learn more about SBA funding options.

In addition to providing funding, the CARES Act also allows employers to defer the deposit and payment of the employer's share of Social Security taxes, as well as for self-employed individuals to defer payment of some self-employment taxes. This applies to taxes incurred between March 27, 2020 through December 31, 2020.

Similar to the PPP, the Employee Retention Tax Credit is designed to encourage employers to keep employees on their payroll. This credit consists of a refundable payroll tax credit for 50% of up to $10,000 in wages paid by employers whose business has been suspended during the COVID-19 pandemic, or businesses whose gross receipts decline by more than 50%.

You do not need to apply for the Employee Retention Tax Credit. If you received a loan under the PPP, you are not eligible for this tax credit.

Most states and many municipalities are offering their own funding options. Here is a complete list of state funding options.

Community Development Financial Institutions (CDFIs) are not-for-profit financial institutions that provide credit and financial services to disadvantaged areas, with a special focus on women and minority business owners. If you fall into one of these groups, you may be able to secure the funding you need from a CDFI in your area.

Funding is also available through alternative online lenders like Bluerock Options. Alternative lenders may charge higher fees than the SBA, but this funding source offers a number of advantages for businesses impacted by COVID-19, including:

• Easier qualification criteria with less paperwork to gather
• Faster review and approvals, with approval in as little as 2-5 business hours and funding in as little as 1 business day
• There are no restrictions on how your funds are used-use them for payroll, inventory, or everyday operating expenses
• A variety of funding options are available to suit your business's needs, including merchant cash advances, invoice factoring, collateral loans, and business lines of credit
• Businesses with low credit can receive funding. Instead of focusing on your credit score, our Funding Advisors will review the overall health and potential of your business
• Businesses in high-risk industries can also receive funding

If you didn't receive federal funding through SBA-backed programs like the Paycheck Protection Program or Economic Injury Disaster Loan, you're not alone. Many businesses had and are continuing to experience difficulties accessing this funding or were not approved for as much funding as they requested.

There are a number of alternative funding options available to small businesses negatively impacted by COVID-19, including state and local funding and alternative lenders like Bluerock Options.

On March 17, 2020, the federal government announced revisions to two criteria for businesses seeking SBA Disaster Assistance Loans.

1. Faster, easier application process for states seeking an economic injury disaster loan declaration. States no longer need to prove that businesses have been impacted in all counties or parishes.
2. Expanded statewide access to SBA Disaster Assistance Loans for Small Businesses. SBA Disaster Assistance Loans are now available statewide following an economic injury declaration. This applies to current and future disaster declarations related to COVID-19.

These changes to eligibility criteria make it easier for businesses to acquire an Economic Injury Disaster Loan declaration, which in turn makes SBA Disaster Assistance Loans available to small businesses and not-for-profit organizations statewide. As of June 1, 2020, businesses in all states are eligible for SBA disaster assistance funding.

The CARES Act, signed into law on March 27, 2020, contained $376 billion in relief for American workers and small businesses. In addition to traditional SBA funding programs such as 7(a) loans and the existing Economic Injury Disaster Loan, the CARES Act established four new temporary loan programs designed to address the ongoing COVID-19 outbreak.

Let's take a look at the funding options available to businesses impacted by COVID-19.

Traditionally used by businesses impacted by natural disasters such as hurricanes, tornadoes, or flooding, SBA Economic Injury Disaster Loans are also available to businesses suffering as a direct result of COVID-19.

Historically, SBA Disaster Assistance Loans have had an average approval and disbursement time of 4 weeks, but the SBA has streamlined their application process to accelerate approvals and provide funding as quickly as possible. Their updated online application takes approximately 2 hours to complete.

8.5% of businesses surveyed as part of the Small Business Pulse Survey requested EIDL funding between June 14 and June 20. Having timely access to capital will be critical to the success of many small businesses throughout the COVID-19 pandemic.

Economic Injury Disaster Loans are designed to help businesses overcome loss of revenue experienced as a result of a natural disaster. While these loans are traditionally granted to businesses rebuilding after a natural disaster such as a hurricane or tornado, they are also available to businesses impacted by pandemics such as COVID-19, and can be used to:

• Pay fixed debts
• Maintain payroll and accounts payable
• Cover other bills and expenses

Apply for an Economic Injury Disaster Loan.

The newly-launched Paycheck Protection Program (PPP) is a temporary expansion of the traditional SBA 7(a) loan. The PPP offers a direct incentive for small businesses to keep their employees on the payroll by offering temporary loan forgiveness to all businesses who retain employees throughout the pandemic.

Loan 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.

75% of businesses surveyed as part of the Small Business Pulse Survey requested PPP funding between June 14 and June 20.

Business owners can apply for PPP through any existing SBA 7(a) lender, as well as any federally insured depository institution, federally insured credit union, or participating Farm Credit System.

The following businesses are eligible for the Payroll Protection Program:

• Any small business that meets the SBA's size standards
• Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans organization, or Tribal business concern with greater than 500 employees or that meets the SBA industry size standard if they employ over 500 workers
• Any business with an NAICS code that begins with 72 (Accommodations and Food Services) and that has more than one physical location and less than 500 employees per location
• Sole proprietors, independent contractors, and self-employed workers

PPP funding is designed to help businesses keep their workforce employed during the COVID-19 crisis. Funding must be used for:

• Payroll
• Rent
• Mortgage interest
• Utilities

At least 75% of funding must be used for payroll in order to be eligible for loan forgiveness.

Learn more about the SBA's Paycheck Protection Program.

The Economic Injury Disaster Loan Advance offers up to $10,000 in fast economic relief for businesses currently experiencing difficulties caused by COVID-19.

Due to overwhelming demand, the SBA stopped processing EIDL Advance applications on April 15, 2020. As of June 15, new applications are being accepted from all eligible small businesses and U.S. agricultural businesses. Applicants who have already submitted an application will be processed on a first-come, first-served basis.

Learn more about the Economic Injury Disaster Loan Advance.

Express Bridge loans up to $25,000 are available for businesses that currently have a relationship with an SBA Express Lender. These can be term loans or loans used to bridge the gap while applying for a direct SBA Economic Injury Disaster Loan.

Businesses with an urgent need for cash while waiting for decision and disbursement on an Economic Injury Disaster Loan may qualify for an Express Bridge Loan.

Learn more about SBA Express Bridge Loans.

SBA Debt Relief offers financial reprieve for small businesses with new or existing SBA loans, excluding PPP or Economic Injury Disaster Loans.

You do not need to apply for SBA Debt Relief-it will be automatically provided as follows:

• For loans not on deferment, the SBA will begin making payments with the next payment due, and will make six monthly payments.
• For loans currently on deferment, the SBA will begin making payments with the next payment due after the deferment period has ended, and will make six monthly payments.
• For loans made after March 27, 2020 and fully disbursed prior to September 27, 2020, the SBA will begin making payments with the first payment due on the loan and will make 6 monthly payments.

Learn more about SBA Disaster Relief.

Loans specifically for businesses that achieve sales through exports are also available, including:

• Businesses that export directly overseas
• Businesses that export indirectly by selling to a customer that then exports their products

This funding can be used to help these businesses respond to opportunities and challenges associated with trade.

Learn more about Exporting Assistance.

Relaxed eligibility criteria for SBA Disaster Assistance Loans and expanded funding programs will make it easier for small businesses in designated states and territories to access funding that will help them weather the ongoing coronavirus (COVID-19) outbreak.

Businesses that need working capital fast or that are rejected by the SBA may be able to access the funding they need through alternative lenders like Bluerock Options. Our Funding Advisors are standing by to help you understand alternative funding options.