Can I Use My Chime Account For PPP? The One Best Answer

Sadly no. Chime doesn’t operate on PPP loans. Long-time Chime user, however, does have the option to register a request and attempt a PPP loan with Chime. The fate of your registration, though, bears no guarantee for approval. Giving it a hurt won’t hurt.

Chime’s no hidden free services have attracted many customers since its establishment in 2013. People use the mobile banking app and the online portal for sending and receiving money, building credit, and loans.

A good number of small-scale business owners perform their transactions through the medium because of the ease. So, last year, when a customer had essentially a “Can I use my chime account for PPP?” question and received a firm no from their Twitter handle, many were confused.

Let’s find out if the rumors about Chime rejecting PPP loans are true after all.

How Does Chime Work?

You can build two types of accounts on Chime.

Savings Account
Checking Account

Via checking account, you get a debit card with no monthly or maintenance charges. The fintech company also has connections to over 60,000 ATMs. There’s a map available for you to check the locations of these ATMs and make cash withdrawals for free.

For the Debit card, Chime also doesn’t ask for any explanations. If you decide to disable it one day, the customer service representative won’t be calling you anytime soon. Mobile payment platforms such as Apple Pay also accept payments with the Chime debit card.

For their Savings account, Chime removes the need for a minimum balance or a maximum limit for interest. The biggest benefit has to be the Automatic Savings feature which saves you money for you. The 0.50% rate isn’t one to scoff at either.

The credit builder option on Chime comes with zero credit checks. There’s no hidden fee – annual or otherwise- on interest. The customer doesn’t have to make a minimum security deposit either. Yet, the purchases you make through the account contribute to your credit score. As long as you have a checking account, you are eligible to become part of the credit builder community.

Features like this, it stands to the assumption that a Chime PPP deposit would be accepted.

Yet, from Chime’s end, the answer to Can I use my Chime account for PPP is leaning on the side of negative.

The confusing part is that Chime PPP loans were accepted up until 2020. It was only when several customers had their applications rejected, and the tweet went up in April of 2021 that everyone realized something had changed.

In fact, this caused Chime to lose customers too. To understand why we need to first understand what PPP entails.

What Is PPP?

Can I Use My Chime Account For PPP — Paycheck Protection Program PPP Loan. Wooden cubes on the desk.

The Small Business Administration (SBA) launched the Paycheck Protection Program in light of the Covid-19 pandemic. As several businesses were going out of order and employees were being laid off, the program arranged loans for small business owners. The primary goal was to enable owners to pay their employees in time and retain them.

The SBA covers almost all possibilities a small business could need during this time. This includes mortgage interest, rent and utilities, and worker payment. The second set of loans can be taken after the first one, for the same reasons as the first time.

If the criteria are met, borrowers can get full forgiveness for the loan.
The maximum amount for the loan can’t be over $10 million.
Guarantee or collateral damage is unnecessary to get approval or be eligible for application.
The base interest rate is 1%.
No other fee is applicable to the PPP load.

Considering the entire thing is a scheme run by SBA and shouldn’t in any way affect Chime.

Is Chime Accepting PPP Loans?

As it turns out, Chime rejecting PPP loans rumors is indeed the truth. There is no complicated reason for it. At least, particularly not from what Chime has explained about it.

The only reason Chime PPP loan deposits aren’t accepted is that the program is aimed at small businesses. Chime’s model isn’t meant to accommodate organizations- big or small.

While there are plenty of small business owners that use Chime, the way Chime’s verification works, they have no way of knowing if they are authentic. As such, Chime prefers letting customers use their service only for personal reasons. It’s fine if you are using Chime to purchase something with the Chime debit or credit card or sending money to a dear friend.

However, they actively discourage business owners from using their services to trade in goods services or for making payments to employees.

The initial stance from Chime was that any kind of loan scheme from SBA, including PPP, would receive a swift rejection. And sent back to IRS.

A couple of days later, from their initial statement, Chime did say they would consider some PPP deposits. However, there is no proper explanation for how they are deciding who to approve for PPP loans.

The mystery between Chime and PPP is to remain between them for now.

Can I Use My Chime Account For PPP: What Should I Do?

If the question, “Can I use my Chime account for PPP?” has been bothering you for a while, the straightforward answer to that is no. So, what can you do in this scenario?

If you’re a long-time Chime user and have enough trust with the bank, you can still attempt a PPP loan with Chime. However, the fate of your application will be entirely up to a shaky process with no guarantee for approval. It’s a lottery you might never win.
If you haven’t sent in your PPP application, you want to put down the details of any other bank you are using instead of Chime.
For businesses, it is actively discouraged not to use Chime for PPP loans. Rejection is more likely than not.

Can I Use My Chime Account For PPP: Why Is SBA Rejecting My PPP Loans?

If you were wondering, “Can I use my Chime account for PPP loans?” the answer turned out to be no. So, it makes sense for Chime to reject your PPP loans.

What you can’t understand is why your PPP loan is being rejected, no matter the bank. What could be the cause?

You applied for the second wave PPP loan. Right now, your business might not be meeting the criteria for it and thus the rejection.

Your business conditions aren’t eligible for the first wave PPP loan.
The SBA software glitch caused the rejection of your application. Send it again, and it will work this time.

Since there is a huge number of PPP applications being sent SBA’s way, they created automated software to take care of the process. While the software is accurate for the most part, there have been times where glitches in it caused wrongful rejections. It might have caused some undeserving approval too.

People have been using the program to receive unlawful help. They have been faking their details to get associated with the program. SBA is also looking into this now.

Can I Use My Chime Account For PPP: Am I Eligible for PPP?

Can I use my Chime account for PPP? It is a distant question if you don’t know whether you are eligible for it in the first place. So, let’s run the checklist through that and see if you are one of the people who can benefit from it. The first and foremost has to be that the negative impact on your business has been due to the Covid-19 pandemic. Additionally, your business began its operations before 15 February 2020.

If you are applying for first wave PPP loan:

You should be either a self-employed person, a solo business owner, or a freelancer.
Your business has less than 500 employees.
Small businesses can be LLCs, non-profits, tribal businesses, S or C corporations, and veteran associations.
If the NAICS code of the business begins with 72, which generally means accommodation and food services, it’s eligible. However, they have to have less than 500 employees for every location. Their locations should also be more than one.

If you are applying for second draw PPP loans:

A first draw PPP loan has already been approved for you. The amount you received has been used or will be used in the near future completely.

Your employee count doesn’t pass the 300 mark.

Between 2019 to 2020, your business has suffered at least a 25 percent loss. The quarters should match each other to provide solid proof.

There are businesses that can’t apply for PPP or any kind of SBA loan. This includes the usual rules such as not being convicted of fraudulent activities on federal loans or taxes before.

A business located outside the country also isn’t eligible. Additionally, you aren’t running some kind of pyramid scheme or limiting access to your business. You maintain a non-discriminatory stance while hiring.

A government-owned business can’t apply for this program. You aren’t a lender yourself or own real estate, which is considered a passive business.

If your business associate has previous accusations against them, then your relation to them would lead to rejection of a PPP loan too. Your business won’t have many chances if it is actively lobbying for a political party, either.

You should read up on which businesses aren’t eligible for PPP loans properly. Do your due research before you send an application.

It’s not that you will only be rejected, but the SBA might look into your regular activities. They might become interested in whether you are committing fraud or any other kind of crime. So, you should have a clean track record and clarify you are eligible directly with the SBA first.

Frequently Asked Questions: Can I Use My Chime Account For PPP?

1. Does Chime accept PPP loans?

As of now, the answer to the question can I use my Chime account for PPP is a no. If they do, the lender has to be:

Benworth
DreamSpring
Harvest Small Business Finance
Fountainhead
SEDCO

Even then, the possibility of your PPP deposit being accepted by Chime is a low possibility.

2. Does Chime accept SBA loans?

According to Chime, they are not accepting any kind of SBA loan deposit. Be it PPP or other programs; the lid is closed on those. Chime does not want customers to use their banking services for any kind of business purpose, as it messes with their security and fraud restriction practices.

3. Is Chime a bank?

Chime is a financial technology company. All the banking service Chime provides is actually facilitated by The Bancorp Bank.

4. How is Chime fighting fraud?

The primary reason Chime is vigilant with PPP loans applications is because of the number of frauds being committed. While the actual reason the program was started was to support small businesses suffering from the pandemic, many decided to take advantage of it.

As such, when Chime receives PPP applications and notices anything suspicious about them, they direct it back to the Small Business Administration and the US Department of Justice. Additionally, they also sent it to IRS.

5. Does Chime accept unemployment benefit deposits?

Unemployment insurance is a program for those who lost their job suddenly due to some sort of external influence. The majority of the people eligible from the program seem to have been affected by the coronavirus pandemic in one way or another. Chime accepts direct deposits from the Unemployment program and gives almost a similar level of privileges as those provided to employed Chime users.

Can I Use My Chime Account For PPP: Sorted

The unfortunate, conclusive answer to can I use my Chime account for PPP is that you can’t. While you can attempt a Chime PPP deposit, there are more chances of Chime rejecting your deposit than not. The criteria by which they decide whether to accept someone’s application is undisclosed for now.

You will probably have better chances if you have been a long-time Chime user and have a good credit score built-up. Since Chime fears fraudulent activity, if you have all your details in order, that’s also beneficial for you.

[Answered] Can I Use My Chime Account for PPP?