The Paycheck Protection Program (PPP) has saved many small businesses during this difficult time of the pandemic. If you are an entrepreneur who is looking to apply for a PPP loan, it is understandable to ask – “Is chime accepting PPP loans?”.
You can deposit the PPP loan on your Chime account, but Chime does not provide these loans. Furthermore, the bank which has approved the PPP loan has to be in partnership with Chime. Otherwise, you will not be able to even deposit the money provided by the lender.
Chime Doesn’t Grant PPP Loans, but You Can Use Your Account for Depositing
People can borrow money from the Chime banking app, but these are small amounts for everyday use. If you are looking to apply for a PPP loan, you need to find a lender that is authorized to grant these loans. Once granted, the money can be deposited into your Chime account if that is what you want. However, you can deposit money on Chime only from certain lenders that have partnered with this financial technology company, and these are:
- Benworth,
- Fountainhead,
- DreamSpring,
- Harvest Small Business Finance,
- SEDCO.
Chime officials have recently stated that they are working to incorporate more PPP-eligible lenders since it is an immensely popular loan program among small business owners, but they are yet to announce any new partners.
Also, you mustn’t forget that there is a limit to how much money you can deposit to your Chime account on a daily and monthly basis (the daily limit is 1,000 dollars and monthly 10,000 dollars). Therefore, you will probably have to deposit in installments if you wish to add money to Chime from your PPP loan.
Why Should I Deposit My PPP Loan to a Chime Account, and Is It Safe to Do So?
This is a perfectly reasonable question to ask since many online banking services demand monthly subscription fees and even have hidden taxes. On the other hand, Chime is pretty transparent when it comes to this, and here are the advantages and disadvantages of depositing.
| Pros | Cons |
| Chime doesn’t have any monthly subscription fees or hidden taxes. Even if you don’t have an account and intend to open one for depositing this loan, no money will be required. Moreover, you will get a 50-dollar sign-up bonus on top of everything. | Although Chime has partnered with many banks across the state, the options are still limited. If you have to use an ATM that does not belong to the Chime network, there will be a fee for such a service. |
| There is a fixed interest rate of 1%, and there is no limit to the amount of interest that can be accrued over time. | You can send money from your Chime account without paying any fees. However, the maximum amount that can be sent monthly is 2,000 dollars. This is usually too low for business owners. |
| Chime is covered by the Federal Deposit Insurance Corporation (FDIC,) which means that your money will be in a safe place. Basically, the only way you can get scammed nowadays is if you use some unofficial website that pretends to be Chime’s and that is easily recognizable. | We have mentioned that there is a limit to how much money you can deposit on a daily and monthly basis (1,000 and 10,000 dollars). As stated by the Small Business Administration (SBA,) the average PPP loan is around 107,000 dollars. Hence, if you want to quickly deposit your money to some platform, Chime will be rather inconvenient. |
| Chime is compatible with Google Pay and Apple Pay, and that can be pretty useful if you have to use these services for your business. | |
| The Chime app has a well-developed and convenient interface where you can easily keep track of all your transactions and view your transaction history. |
Keep in mind, though, that Chime is not a bank, and in order to be eligible to use this banking app, you need to open a valid bank account.
The PPP Loan Program Has Helped Workers Keep Their Jobs During the Pandemic
Unfortunately, due to the coronavirus pandemic, many small businesses have suffered a lot and have been forced to limit their enterprise. That has immediately resulted in many workers losing their jobs. In order to protect the rights of workers and help them maintain their jobs during the pandemic, the state has introduced the PPP loan program.
Basically, all independent contractors, sole proprietors, and self-employed people who feel that they cannot financially support their workers anymore have the right to apply for this loan. This money can be used for various purposes like rent payments, fund payrolls, utility expenses, and covid-related protection for employees. If you wish to apply for this loan, you can visit the official SBA website and check which lenders have acquired the right to grant PPP loans and what documentation is required. Nowadays, most renowned US banks are part of this program as the demand for PPP loans is high.
Having a Mobile Banking App Can Help You a Lot With the Allocation of Your Money
Although Chime company doesn’t grant PPP loans, its app can still be useful if you need to carefully allocate your funds. Depositing the entire sum might not be possible, but if you need to deposit certain amounts, your Chime account could be a great option. Above all, you will know that your money is completely safe, but there also won’t be any fees and taxes. You would be able to withdraw the needed amount at any time.