Blueacorn Review

About Blueacorn

Blueacorn, a fintech lender service provider, played a significant role in facilitating the distribution of funds through the Payment Protection Program (PPP) during the COVID-19 pandemic. Established in April 2020, the company aimed to democratize access to PPP loans for small businesses, independent contractors, and self-employed individuals who often faced challenges securing relief through traditional banking channels. Blueacorn successfully assisted over 808,000 small business owners, disbursing $12.5 billion in SBA PPP funds, with an average loan size of $15,463.

Key Features

1. User-Friendly Portal. Blueacorn provides a user-friendly online portal, making it easy for applicants to navigate through the application and forgiveness processes. The intuitive interface ensures a smooth experience for users at every stage.

2. Fast Application Processing. The company emphasizes speed in processing loan applications, aiming to swiftly provide much-needed financial assistance to eligible businesses and individuals. This feature is especially crucial during times of economic uncertainty, such as the COVID-19 pandemic.

3. Democratized Access. Blueacorn's mission is to democratize small business lending, ensuring that even those who may be overlooked by traditional banking institutions have access to PPP funds. This includes independent contractors, freelancers, and gig workers.

Pros and Cons

Pros

Cons

Reliability

Blueacorn has positioned itself as a fintech lender service provider with the mission of democratically distributing funds through the Payment Protection Program (PPP). Its commitment to inclusivity, fast processing, and transparent fee structures has made it a preferred choice for small businesses, independent contractors, and self-employed individuals seeking financial relief during the COVID-19 pandemic. The user-friendly portal and partnership with certified Small Business Administration (SBA) lenders contribute to a streamlined application and disbursement process, enhancing the overall user experience.

However, recent allegations and findings from investigations raise questions about the reliability of Blueacorn's operations. The House Select Committee on the Coronavirus Crisis report has outlined concerns about potential oversight in the application review process, including the overlooking of signs of fraud. Accusations that Blueacorn may have collected significant processing fees while facing allegations of securing fraudulent loans add a layer of complexity to its reliability.

How to Apply for a Blueacorn Loan?

1. Visit the Blueacorn Website. Access Blueacorn's official website by entering the URL into your web browser. The website typically provides comprehensive information about the loan application process, eligibility criteria, and other essential details.

2. Create an Account. To initiate the application process, you may need to create an account on the Blueacorn platform. You will need to create a new login, and have your SBA Loan number and SSN / EIN ready.

3. Complete the Application Form. Once your account is set up, you'll be guided through an application form. The form will likely request essential details about your business or self-employment, financial information, and other relevant data. Ensure that you provide accurate and up-to-date information.

4. Submit Required Documents. Blueacorn may require supporting documentation to process your loan application. Commonly requested documents include tax returns, proof of payroll expenses, and other financial records. Ensure that you have these documents prepared and submit them as part of the application process.

5. Review and Confirm Details. Before submitting your application, carefully review all the details you've entered. Ensure accuracy in the provided information, as any discrepancies may delay the processing of your application.

6. Wait for Approval. Once your application is submitted, the Blueacorn team will review the information and documentation. If you have applied for a PPP loan but have not yet received SBA approval, they will continue to process your application and keep you updated on the status.

7. Receive Funds. Upon approval, the funds will be disbursed to your designated bank account. Blueacorn facilitates the direct transfer of funds, providing you with the financial support needed for your business operations.

8. Loan Repayment Information. Familiarize yourself with the terms and conditions of the loan, including the repayment schedule and any associated fees. Blueacorn typically provides clear information on the terms of the loan during the application process.

Conditions and Requirements

Conditions

1. Loan Amounts. Blueacorn offers loans under the Payment Protection Program (PPP) with amounts based on the borrower's payroll costs, up to a certain maximum limit. The loan amount is intended to cover essential payroll expenses, rent, utilities, and mortgage interest.

2. Interest Rates. The interest rates for PPP loans are typically low, and Blueacorn provides details about these rates during the application process. The interest rates are set to make the loans more accessible and affordable for small businesses.

3. Loan Forgiveness. Blueacorn assists borrowers in navigating the loan forgiveness process. The company provides guidance on the required documentation and ensures that borrowers understand the conditions under which the loan can be forgiven, typically based on maintaining payroll and other eligible expenses.

4. Transparent Fee Structure. Blueacorn maintains transparency regarding any fees associated with the loan. Borrowers can review and understand the fee structure during the application process, ensuring clarity about the financial implications of utilizing Blueacorn's services.

5. Secure Application Process. Blueacorn employs secure encryption technology to protect the financial information and personal details of borrowers. This commitment to security is crucial in ensuring the confidentiality and integrity of the application process.

Requirements

1. Eligibility Criteria. Borrowers need to meet the eligibility criteria set forth by Blueacorn and the Small Business Administration (SBA). Eligibility often includes factors such as the size of the business, the nature of the business, and the impact of the COVID-19 pandemic on operations.

2. Accurate Financial Information. Applicants are required to provide accurate and up-to-date financial information, including payroll records, tax returns, and other documentation. This information is crucial for determining the loan amount and ensuring compliance with program guidelines.

3. Compliance with PPP Guidelines. Borrowers must adhere to the guidelines outlined by the PPP, including the appropriate use of funds for eligible expenses such as payroll, rent, utilities, and mortgage interest. Non-compliance may affect the forgiveness of the loan.

4. Submission of Required Documents. Blueacorn typically requires borrowers to submit specific documents as part of the application process. These documents may include tax returns, payroll documentation, and other financial records. Timely and accurate submission of these documents is essential for a smooth application process.

5. Understanding Loan Terms. Borrowers should thoroughly review and understand the terms and conditions of the loan, including the repayment schedule, interest rates, and any associated fees. This ensures informed decision-making and clarity regarding the financial obligations associated with the loan.

Ways to Receive the Money

1. Direct Bank Deposit. The most common method for receiving PPP funds is through a direct bank deposit. Borrowers are typically required to provide their bank account information during the application process. Once the loan is approved, the funds are electronically transferred directly into the designated bank account.

2. Prepaid Debit Card. In some cases, borrowers may receive their PPP funds via a prepaid debit card. Blueacorn may issue a prepaid card loaded with the approved loan amount. Borrowers can use the card for eligible expenses or transfer the funds to a bank account as needed.

Products

1. PPP Loans. Blueacorn specializes in facilitating PPP loans, which are designed to provide financial assistance to small businesses, independent contractors, self-employed individuals, and gig workers affected by the COVID-19 pandemic. These loans aim to cover payroll costs and other eligible expenses, with the potential for forgiveness under certain conditions.

2. Loan Forgiveness Assistance. Beyond loan disbursement, Blueacorn offers guidance and support to borrowers seeking forgiveness for their PPP loans. The company assists borrowers in understanding the forgiveness process, provides information on required documentation, and helps navigate the complexities of achieving loan forgiveness.

3. Prepaid Cards. In certain cases, Blueacorn may disburse PPP funds to borrowers through prepaid debit cards. These cards can be used for eligible business expenses and may offer a convenient method for accessing and utilizing the approved loan amount.

Reasons for Getting Rejected for a Blueacorn Loan

1. Ineligibility. Applicants must meet specific eligibility criteria set by Blueacorn and the Small Business Administration (SBA). If an applicant does not meet the required criteria, their application may be rejected. Eligibility factors may include the size and nature of the business, the impact of the COVID-19 pandemic on operations, and compliance with program guidelines.

2. Incomplete Documentation. Submitting incomplete or inaccurate documentation can lead to a loan rejection. Blueacorn requires certain documents, such as tax returns, payroll records, and other financial documents, to process loan applications. Failing to provide the necessary information may result in an application being denied.

3. Creditworthiness. Blueacorn may assess the creditworthiness of applicants as part of the loan approval process. A poor credit history or low credit score could be a factor leading to rejection. However, the PPP program generally places less emphasis on credit scores compared to traditional loans.

4. Failure to Meet Program Requirements. The PPP program has specific requirements regarding the use of funds, such as allocating a significant portion to payroll expenses. If an applicant's business model or expenditure plan doesn't align with the program's guidelines, it may result in rejection.

5. Fraudulent Activity. Any signs of fraudulent activity or misrepresentation in the application may lead to rejection. Blueacorn, like other lenders, takes measures to ensure the integrity of the PPP program, and applications with suspicious information may be declined.

6. Exhaustion of PPP Funds. The availability of funds for the PPP program is limited, and once the allocated funds are exhausted, the program may close to new applications. If an applicant applies after the program has closed, their application will be rejected.

7. Issues with Previous PPP Loan Forgiveness. Borrowers who have previously received a PPP loan may face challenges if they have unresolved issues or discrepancies related to loan forgiveness from previous rounds.

How to Repay a Blueacorn Loan?

1. Understand the Loan Terms. Review the loan agreement provided by Blueacorn to understand the terms and conditions of the loan. Pay attention to the interest rate, repayment period, and any other relevant details.

2. Identify the Repayment Schedule. The loan agreement will specify the repayment schedule, including the frequency of payments (e.g., monthly) and the due dates. Take note of when payments are required to avoid late fees.

3. Set Up Automatic Payments. Many lenders, including Blueacorn, offer the option to set up automatic payments. This ensures that your loan payments are deducted from your bank account on the specified due dates. Automatic payments can help you avoid missing deadlines and late fees.

4. Review Repayment Options. If you encounter financial challenges or anticipate difficulties in making payments, contact Blueacorn to discuss potential repayment options. Some lenders may offer flexibility or alternative arrangements based on individual circumstances.

5. Prepare for Loan Forgiveness Application. If your PPP loan is eligible for forgiveness, Blueacorn will provide guidance on the forgiveness application process. Follow the instructions and provide the necessary documentation to seek forgiveness for the applicable portion of the loan.

6. Monitor Account Statements. Regularly review your bank statements and loan statements to confirm that payments are being processed correctly. If you notice any discrepancies or issues, contact Blueacorn promptly.

7. Contact Customer Support. If you have questions or concerns about loan repayment, don't hesitate to contact Blueacorn's customer support. They can provide assistance, address inquiries, and guide you through the repayment process.

Alternatives

National Funding offers a swift capital access solution for borrowers who may face challenges qualifying for traditional loans. With a minimum credit score requirement of 600 and a relatively short business history of six months, National Funding provides a viable option for businesses seeking quick access to capital. The lender's minimum annual revenue requirement is $250,000, making it accessible for a range of enterprises looking to secure funding efficiently and without the stringent criteria associated with more conventional lending options.

Accion stands out as a supportive lender focusing on providing financing opportunities for entrepreneurs facing difficulties securing traditional funding. The lender targets minority, women, and low-to-moderate-income entrepreneurs, aiming to bridge gaps in financial inclusion. With a minimum credit score requirement of 570, a modest 12-month time in business, and a minimum annual revenue of $50,000, Accion caters to businesses seeking financial assistance with a commitment to fostering inclusivity and diversity in entrepreneurship.

SBA 504 loans play a pivotal role in fostering business growth and job creation by facilitating the acquisition or enhancement of significant fixed assets. These loans are available to for-profit U.S. businesses with a net worth below $15 million and an average net income of less than $5 million over the two years preceding the application. Individual lenders assess financial qualifications, making SBA 504 loans a versatile option for businesses aiming to invest in major assets and contribute to economic development.

Funding Circle serves as a financing option tailored for established businesses looking to fund expansion projects or refinance existing debt. With a minimum credit score requirement of 660 and a business history of at least two years, Funding Circle targets businesses that have demonstrated stability and are poised for growth. Notably, there is no specified minimum annual revenue requirement, offering flexibility for businesses seeking financial support to propel their next stage of development. Additionally, a clean bankruptcy record within the past seven years is a prerequisite for qualification with Funding Circle.

Loans like Blueacorn

OnDeck

OnDeck stands out as an excellent choice for short-term business loans, offering the flexibility of borrowing substantial amounts, even for businesses with a minimum credit score. What makes OnDeck particularly attractive is its ability to provide funds swiftly, with same-day approval and disbursement for qualifying applicants. Moreover, OnDeck emphasizes the opportunity to build and strengthen business credit by consistently making on-time payments. The loan terms range from 18 to 24 months, with loan amounts spanning from $5,000 to $250,000. While the starting interest rate is 35.40% for a portion of customers, the accessibility and speed of funding make OnDeck a notable player in the short-term business loan landscape.

Funding Circle

Funding Circle distinguishes itself in the realm of long-term business loans by offering competitive rates, extended repayment terms, and a lack of prepayment penalties. This lending option caters to businesses seeking larger loan amounts, ranging from $25,000 to $500,000, with a reasonable starting interest rate of 11.29%. Beyond financial support, Funding Circle prioritizes efficiency, enabling businesses to access funds in as little as two business days. Notably, Funding Circle also showcases its commitment to diversity by providing funding options specifically tailored for women-owned businesses and minority entrepreneurs. The loan terms extend from 6 to 84 months, making Funding Circle a favorable choice for businesses with a more extended financial horizon.

Credibly

Credibly positions itself as a reliable source for working capital loans, particularly for businesses requiring quick funding to address immediate operational needs like payroll or inventory expenses. Notably, Credibly's working capital loans boast a rapid approval process, often providing funds in less than 24 hours. The lender exhibits flexibility by considering applicants with a minimum credit score of 500 and a willingness to look beyond a less-than-perfect credit history, provided there is a healthy annual revenue. Beyond working capital loans, Credibly collaborates with a network of lenders to offer a diverse range of financing options, including merchant cash advances, business lines of credit, equipment financing, SBA loans, and invoice factoring.

Fundbox

For startups in need of swift financing, Fundbox presents an appealing option with its business line of credit, offering up to $150,000. What sets Fundbox apart is its relatively lenient eligibility criteria, allowing new companies to qualify after just six months of operation and a minimum annual revenue of $100,000. The business line of credit provides the flexibility to withdraw funds as needed, and businesses only pay interest on the amount utilized. Additionally, Fundbox offers perks such as up to 20% off fees through its Fundbox Plus upgrade. With competitive starting interest rates ranging from 4.66% for 3-month terms to 8.99% for 6-month terms, Fundbox addresses the financial needs of emerging businesses seeking quick and accessible startup loans.

Editorial Opinion

Important

How to Choose a Lender

1. Make sure to confirm whether the lender is licensed to operate in your state. You can verify this information with your state regulator or attorney general.

2. Check if the lender is a member of a reputable association, such as the Community Financial Services Association of America. Membership in such organizations may provide an extra level of reliability.

3. Carefully review all the terms and conditions of your payday loan contract.

4. Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.

5. Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.

6. Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.

Methodology

At Finanso, we've carried out a comprehensive analysis of over 50 business lenders, assessing them based on 35 different parameters across six key categories: accessibility of loans, customer relations, quality of service, interest rates, and transparency of conditions.

In each category, we carefully considered the most critical factors in selecting a lender. These factors include the interest rates, available loan amounts, minimum credit score, minimum income, application fees, and the speed at which funds are transferred.

At Finanso, we highly value our users, which is why we also focus on the quality of customer service, user reviews, and additional features that can aid our users in making a well-informed decision.

Our ultimate goal is to provide insightful recommendations and expert advice to assist you in selecting a lender that best caters to your specific needs.

Additional Resources

• GoKapital Account Review
• How to Apply for GoKapital Loan
• How to PayOff GoKapital Loan
• GoKapital Mobile Apps
• GoKapital Reviews

Sources

• Blueacorn

• A congressional report says financial technology companies fueled rampant PPP fraud