President Trump signed legislation this afternoon infusing an additional $310-billion to the PPP loan fund that was previously exhausted 4/16/20. Like the first round of funds, these will likely go fast, so you'll want to apply quickly.
With the passing of the Coronavirus Aid, Relief and Economic Security (CARES) Act on March 27, 2020, a big win for small businesses is the $349-billion PPP, that provides cash-flow assistance in the form of *fully forgivable government-backed loans.
Our goal is to spread awareness and better understanding of this program to folks, show that most are eligible, and how to apply quickly (now through Quickbooks, Square, and PayPal). Should you have any questions or need assistance, please drop us a line. We’re happy to help.
100% forgiveness qualifications are:
Use loan funds as outlined (documentation required):
Eligibility generously includes:
Must certify in good faith that current economic uncertainty makes the loan necessary to support ongoing operations, such as sustain workers, payroll, mortgage/rent, and utility payments
While owners with ownership in other business will have to be detailed in an Addendum, it’s still unclear how that will impact eligibility across entities depending on unique circumstances
Maximum loan of 2.5 x average monthly eligible payroll and related costs, up to $10M
Terms are 2 years @ 1.0% with no payments for 6 months (interest accrues) and no pre-payment penalties
No personal guarantee or collateral required, and a credit check is not required
Program is open until 6/20/2020, or until funds are exhausted, and applications are scheduled to begin:
Loans are originated and serviced through SBA-approved lenders, so we advise reaching out to your bank quickly to ensure they can access this program
Thankfully, on 4/13/2020, the SBA approved some well known non-banks that many folks are already doing business with:
While lenders will set their own list of supporting documents, here are suggested items to gather: