What is a Paycheck Protection Program SBA loan? This is an sba program for covid-19 coronavirus that many businesses can get fairly easily. Much of the money can be forgiven and does not have to be repaid if the business follows the rules. Did not get approved or your PPP loan was not forgiven? Apply for other funding options below now!
Call 919-771-4177 for more info.
Businesses get 2.5 times their average monthly payroll and funding is expected within 2 or 3 days. Forgiveness for several types of expenses is approved upon documentation and proof of expense per sba guidelines.
Call us at Tel: 1-919-771-4177
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 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: Your company 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 eligibility based on the Payroll Protection program’s 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 getting the proceeds, you can use the money only for payroll, business mortgage, lease or utilities. Keep full and accurate records of all bills and payments towards these qualifying and forgivable expenses. When you are ready to close, complete all items required and receive the money.
FAQ Frequently asked questions on how to get a Paycheck Protection Program SBA Loan
Do I have to pay the PPP loan back?
If you meet the forgiveness requirements, then you do not repay any amount spent on qualifying business expenses up to 8 weeks after you received funding.
I did not get PPP paycheck protection funding. Are there other options?
There are several other secured and unsecured options. Unsecured programs are for businesses that have only had minor fluctuations in sales. Secured programs using equipment, vehicles, accounts receivables and real estate are still funding.
Are these government loans all forgiven?
They are not automatically forgiven. Your business must prove the funds were spent on qualifying expenses and forgiveness must then be approved. Any non qualifying use of money must be repaid.
Can I use the Paycheck Protection Program money for anything?
The funds will be used to retain workers and maintain payroll. This means business mortgage, lease, and utility payments.
Call 919-771-4177 for more info.
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 after receiving the proceeds and provide this documentation to the lender.
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 funding 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 money. This includes what you can use the funds for and what you can’t use the money for.
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