Application for SBA’s New Payroll Protection Program (PPP) Is Now Available and available through June 30 or until the funds run out. APPLY NOW OR AS SOON AS POSSIBLE!!
SBA has announced that small businesses with employees and sole proprietors may start applying for these loans as soon as this Friday, April 3.
Self-employed individuals and independent contractors may start applying on April 10.
To learn more about the loan program and how to apply, or to start filling out the paper application, visit Venturize. The application can be found here on the Treasury site, along with details for borrowers and lenders.
Who’s eligible? How much can be borrowed? What do you need?
- Small employers with 500 employees or fewer who were in business on February 15, 2020
- Other business concerns that meet the current SBA size standards
- Sole proprietors, self-employed individuals and contractors
- Certain nonprofits, including 501(c)(3) organizations and 501(c)(19) veteran organizations, and tribal businesses with under 500 employees
- Businesses in the accommodation and food service industries can apply on a per location basis if they have 500 employees or fewer per location.
- Maximum loan amount $10MM
You will need to have the following documentation to apply:
- Articles of incorporation for each borrowing entity
- By-laws or operating agreement for each borrowing entity
- Copies of each owner’s driver’s license
- Payroll expense verification
- Certification that all employees live in the United States
- A detailed list of employees who do not live in the U.S., with corresponding salaries
- A trailing 12-month profit and loss statement
- Proof of expenses like rent or mortgage payments, interest payments on debts, and utility payment
- IMPORTANT: LOAN FORGIVENESS ON THE PAYROLL COSTS ONLY OF UP TO 8 WEEKS; DOES NOT INCLUDE ANY OTHER BUSINESS EXPENSES
- THE LOAN PROCEEDS MUST BE USED TO FUND PAYROLL AND BENEFITS, RENT OR MORTGAGE PAYMENTS, INTEREST ON DEBT, AND UTILITY PAYMENTS
- INTEREST RATE HAS BEEN REDUCED FROM 1% TO .5%
- LOAN PAYMENTS WILL BE DEFERRED FOR SIX MONTHS; INTEREST WILL ACCRUE DURING THE DEFERRAL PERIOD
- MATURITY OF TWO YEARS
- NO COLLATERAL OR PERSONAL GUARANTEES ARE REQUIRED
Note: No personal guarantee or collateral will be required for these loans, and you will not need to certify that you tried and failed to obtain capital elsewhere.