The Federal Government is moving at a fairly fast pace to build and launch relief programs to help members of the small business community. The suggestions of what to provide have been many, and the changes in proposals and existing programs have been rapid, making it hard for businesses owners to keep up with and understand the federal resources available to them at this time.
|TERMS||CARES 7(A) PAYCHECK PROTECTION PROGRAM|
|ELIGIBILITY||– US based businesses|
– Operating on February 15th, 2020
– 500 or less employees, or the employee limit governed by NAICS code
– Can certify economic impact due to Covid-19
|CALCULATION ON FUNDING AMOUNT||2.5 X your prior average monthly payrol|
|MAXIMUM TERM||No payment for the first 6 months|
Term up to 2 years
|CAN BE COMBINED WITH||– Standard 7(a) loan (if obtained before 2/15/2020)|
– EIDL 7(b) loan
|CANNOT BE COMBINED WITH||– Standard 7(a) loan if obtained after 2/15/2020|
– New Standard 7(a) loan application
|APPLICATION SUPPORTING DOCUMENTS||– Payroll documentation showing number of employees and amounts spent over last 12 months|
– 3 months of business bank statements
– Transcripts from payroll taxes paid
As part of the CARES Act, now signed into law, small businesses and some non-profits will have access to SBA loans with higher loan amounts, no restrictions on use (except if seeking 100% forgiveness), deferred payments for 6 months, all fees being waived and the potential for forgiveness of up to the full principal amount through the 7(a) CARES Paycheck Protection Program.
These loans provide an option for 100% principal forgiveness when specific requirements are met
All payments will be deferred for up to 6 months.
Loans can be used to cover payroll cost, rent payments or mortgage interest, and utility payments.
The SBA has increased maximum loan amounts from the standard $5 Million to $10 Million.
The new loan does not require a personal guarantee or collateral and has no minimum FICO requirements.
Your business must be based in the U.S.
Your business must have been in operation on February 15, 2020.
Your business must have the greater of 500 or less employees, or the applicable NAICS size limitations
You must be able to certify that your business suffered economic hardship due to COVID-19.
Our team will help you organize everything needed to apply for an PPP.
We will submit your application to our network of SBA lenders.
Our company is built around helping small business owners get the best lending options for their situations.
We walk you through every step of the process so your path to funding is quick and easy.