SBA Loans for Doordash Drivers
SBA Loans for Doordash Drivers
Our loans for Doordash drivers aren’t made specifically as SBA loans dedicated to these Doordash drivers, but they’re flexible and precise. They’re meant to help with your everyday business costs or the expenses of starting up. But because they’re versatile, you can use them as you see fit.
Since you’re an independent Doordash driver, not an employee, you won’t need to provide any salary documents to get a loan.
All you need is a bank account where we can put your funds and an email for us to send you updates and important information. As these are small business loans, you also need to live in the US or be an American citizen.
Being a Doordash driver means you run a small, independent business that provides a key service, delivering products to customers.
What Happens After The SBA Loan Is Approved
The next day once the SBA loan is granted, the money is deposited to the Doordash driver’s account.
The dasher will receive a message, thus it’s crucial that you provide an email address.
The lender’s bank automatically delivers the whole batch of transfers after listing all the loans that were approved that day. This occurs after the day’s conclusion. Therefore, rather than being credited the same day the loan is granted, the money is deposited to the dasher’s account the following day.
Doordash $ 1000 Grants
SBA loans are beneficial for Doordash drivers since the $1,000 grants or subsidies are no longer available. These subsidies provided assistance throughout the epidemic, and by October 17th 2022 the whole program was abolished.
PPP Loan (Paycheck Protection Program)
PPP Loans or Paycheck Protection programs were designed to help small businesses keep their employees on payroll and cover other business expenses.
As a Doordash driver, you could have qualify for this loan if you have filed a Schedule C on your tax return and meet other eligibility requirements.
To apply for a PPP loan, you needed to submit an application to an SBA-approved lender. The loan amount you could have received was based on your average monthly payroll costs, up to a maximum of $2 million.
The PPP loan was forgivable if you use the funds for eligible expenses, such as payroll costs, rent, utilities, and mortgage interest. To qualify for forgiveness, you must have stilized at least 60% of the loan amount for payroll costs and maintain your employee headcount and compensation levels.
If you’re a Doordash driver, you may be eligible for an SBA loan known as the Economic Injury Disaster Loan (EIDL). This loan is designed to help small businesses and independent contractors like you who have been impacted by disasters, including the COVID-19 pandemic.
The EIDL loan can be used for working capital, such as paying bills, rent, and payroll. It has a low-interest rate and a long repayment term, making it an affordable option for those who qualify.
To apply for the EIDL loan, you’ll need to fill out an application on the SBA website. The application process can take some time, so it’s important to be patient and thorough when completing it.
PPP Loan For Doordash Drivers
The Paycheck Protection Program was an SBA-backed loan that helped small businesses like Doordash drivers during the COVID-19 crisis. That program finished already long time ago in May 2021.
If you already have a PPP loan before that date, you can apply for “forgiveness”
Second Draw PPP loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:
- Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan,
- The loan proceeds are spent on payroll costs and other eligible expenses, and
- At least 60% of the proceeds are spent on payroll costs.
SBA Loans For Uber Drivers
Of course, Uber drivers may also apply for SBA loans intended for Doordash drivers. However, it seems that certain lenders are more experienced at compiling specifications and vetting potential borrowers for one business than another.
I bring this up because sometimes they handle Doordash loans more quickly and Uber loans more slowly.
Paraffin Doordash Loan
The Paraffin Doordash loan is a loan established by Doordash for merchants, this is, for restaurants. It is not a loan available for Doordash drivers.
If they are eligible for these loans, which are Paraffin loans but not SBA loans, the merchants will see a pre-approved amount in their Merchant Portal.
This Merchant Portal is a dashboard visually similar, but really different from the dashboard you have as a Doordash driver.
If they accept therein, they receive the funds within 1-2 days but some restaurant owners wrote in the comments that actually they have received the funds four or five business days after the acceptance of the pre-approval.
Dealerships That Accept Doordash as Income
If you do not qualify for one of these SBA loans for Doordash drivers, you can anyway buy a car in a dealership that accepts Doordash an income.
Some dealerships may have specific requirements or restrictions, such as a minimum income level or a certain amount of time working for Doordash.
All you have to do is prove income. Your bank statements should be sufficient.
If you really want to do it right then go on the IRS website and request an EIN. Set up a small business name as a sole proprietor and they will send you an employee identification number in the mail.
It is free and you can take this EIN to a bank and open a business account and use that bank with doordash. Now all of your income goes to your business bank account which will make proving your income easier.
You work for yourself. You do not need a W-2 or a check stub to prove income.
Work with a dealership that specializes in helping gig economy workers. These dealerships may have more experience working with drivers like you and may be more willing to accept Doordash income.
It’s important to keep in mind that even if a dealership does accept Doordash income, you would MAYBE still need to meet other requirements, such as having a good credit score and a down payment. You may also need to provide additional documentation, such as bank statements or tax returns.
Instant Cash Advance for Doordash Drivers
As a Doordash driver, you may find yourself in need of quick cash for unexpected expenses. Fortunately, there are a variety of cash advance apps available that are geared towards gig workers like you. These apps can provide you with instant access to cash, which can be a lifesaver in times of need.
Moves is a popular cash advance app that offers DoorDash drivers interest-free cash advances up to 100% of their average weekly gig deposits. With Moves, you can easily link your gig accounts and get free gig economy stock rewards as you earn and spend on your Moves Card.
Another option is Earnin, a cash advance app that allows you to access up to $500 of your earned wages before payday. To use Earnin, you’ll need to provide proof of your earnings and link your bank account. Once you’re approved, you can withdraw your earnings instantly.
Dave is another cash advance app that offers interest-free cash advances up to $100. With Dave, you’ll need to link your bank account and provide proof of your earnings. Once you’re approved, you can access your cash advance instantly.
It’s important to note that while cash advance apps can be a great option for quick cash, they should be used responsibly. Make sure you understand the fees and repayment terms before taking out a cash advance, and only borrow what you can afford to repay.
Loans for Delivery Drivers
As a Doordash driver, you are considered an independent contractor and may be eligible for certain loans offered by the Small Business Administration (SBA).
These loans for drivers have been now deprecated. They provided financial assistance during times of the economic hardship, raised by the COVID-19 pandemic.
One loan option that was available to independent contractors was the Economic Injury Disaster Loan (EIDL).
This loan provided up to $10,000 in emergency funds to help cover expenses such as rent, utilities, and other operating costs. While the loan had to be repaid, the first $1,000 could be forgiven.
Another loan option which was available to independent contractors was the Paycheck Protection Program (PPP). This loan was designed to help small businesses keep their employees on payroll during times of economic hardship.
Alternative Loans For Drivers And Gig Workers
There are just a plethora of online payday loans available. You can go through the link and get started immediately.
Complete a form to get started with loans for Uber drivers, and very specific loans for Uber Eats drivers.
You can get started easily with a form to complete to access loans for Doordash drivers, installment loans, or cash advances also for Dashers. The Doordash $1000 grant has finished long time ago in 2022 and the SBA loans are not for Doordash drivers but for merchants, just the same as Doordash Capital which is not available for drivers but for restaurant owners.
There are generic loans for rideshare drivers, and also cash advances for all sorts of independent drivers. There are also standard personal loans for gig workers, short-term payday loans for gig workers, even available through gig worker cash advance apps, general funding for gig workers, and alternatives to loans like those from Giggle Finance from similar companies to Giggle.
Similar are the loans for self employed with bad credit.
There are general personal loans for Lyft drivers, and specific payday loans for these Lyft drivers too.
There is, furthermore, a loan for Grubhub drivers.
