What is a Paycheck Protection Program SBA loan? This is an sba loan for covid-19 coronavirus that many businesses can get fairly easily. Much of the loan can easily be forgiven and does not have to be repaid if the business follows the rules. Did not get the PPP loan? Apply for other small business loans that are funding below now!
Small Business Loans during Coronavirus Now – Secure Docusign
Businesses get 2.5 times their average monthly payroll and funding is expected within 2 or 3 days. Forgiveness for several business expenses is approved upon documentation and proof of expense per sba guidelines.
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The following information below are the aspects for the Paycheck Protection Plan as we have interpreted in the CARES Act. They are subject to change. The SBA may provide further guidance. Start the fast funding request now by completing the link, below.
How to get a Paycheck Protection Program sba loan during Covid-19 Coronavirus. How to steps, direction and tips.
Step 1: Have your company information ready:
Tip: Calculate your average monthly payroll from the most recent trailing 12 months. Multiply that figure times 2.5.
Example: A business spends $120,000 in total payroll between March 30, 2019 and March 30, 2020. $120,000 % 12 = $10,000 average per month payroll in the most recent 12 months. $10,000 x 2.5 = $25,000. The approval amount will be $25,000.
Step 2: Make contact with Payroll Protection Program SBA small loan lenders.
Try to verify that your business should qualify based on the Payroll Protection program’s, also know as PPP, very limited requirements.
Tip: Try to talk to a representative to review the requirements for both approval and forgiveness of debt. Requirements are limited, but adhering to them is critical for approval. Avoid unauthorized use of funds to qualify for forgiveness.
Step 3: Submit an application when you have determined your business should qualify.
Complete the 2 page short application. The application only requires very limited information and verification. Credit is not expected to be an issue. This includes tax liens.
Step 4: Up to and after approval, gather required documentation.
Proof of your payroll will be required. Gather your most recent 12 months of payroll information. Other items required prior to funding include the trailing twelve-month profit and loss statement as of the day of the application for all applicants.
After funding, use these funds only for payroll, business mortgage or lease, or business utilities. Keep full and accurate records of all bill and payments towards these qualifying and forgivable expenses. When you are ready to close, complete all closing items required and receive funding.
FAQ Frequently asked questions on how to get a Paycheck Protection Program SBA Loan
How can I get a Paycheck Protection sba loan fast?
Complete the short application above. Programs are available now to help your business get funds. Funding results and speed subject to change based on volume and changes to the program.
Can I use the Paycheck Protection Program money for anything?
The funds will be used to retain workers and maintain payroll or make business mortgage payments, business lease payments, and business utility payments.
Do I have to pay the loan back?
Upon forgiveness approval, you do not repay any amount spent by the business on qualifying business expenses that are paid up to 8 weeks after the day you received funding.
Is the paycheck protection program loan automatically forgiven?
The loan is not automatically forgiven. You must document the all payments of all qualifying expenses. Apply for forgiveness after 8 weeks. You must then provide all your documentation on those payments made. Lack of proof of payments could result in forgiveness being declined.
I am not getting my PPP paycheck protection funding. Are there other options?
There are several other current options including secured and unsecured options. Unsecured options are available for essential industries and businesses that have had minor or modest fluctuations in sales. Options using equipment, vehicles, accounts receivables and real estate are also still open.
The funds will be used to retain workers and maintain payroll or make mortgage payments, lease payments, and utility payments.
Document the number of full-time equivalent employees on payroll. Also calculate dollar amounts of payroll costs, covered mortgage and interest payments. Furthermore, include business rent and utility payments for eight weeks following this loan and provide to the lender.
Loan forgiveness will be provided for the sum of payroll costs, mortgage interest payments, rent payments, and utilities. Not more than twenty-five percent (25%) of the forgiven amount may be for non-payroll costs is anticipated.
In summary: How to get a Paycheck Protection Program SBA loan for Covid-19 Coronavirus. Review basic information, direction, steps and tips.
Includes specific payroll information to calculate, and prepare as well as important steps to follow after you get the loan. This includes what you can use the money for and what you can’t use the money for. How to get forgiveness for the Payroll Protection Program sba loan.
Top Fastest Business Loans available during Covid-19 Coronavirus
1 Cash flow loans or bank statement loans for Essential industries
2 Loans against vehicles or business vehicles
3 Paycheck protection program – PPP CARE
4 Business loans on Equipment
5 Advances on accounts receivables
6 Loans on Commercial Real Estate