The Paycheck Protection Loans will return soon. Register here to get ready.
Don’t let the coronavirus hold your business back. LoanCentro can help you access an SBA PPP loan easily once round 2 is available. This loan is completely free for you to apply for.
Zero fees. No credit checks.
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Frequently Asked Questions
What are Paycheck Protection Program (PPP) Loans?
Small businesses need a lifeline right now, and the federal government has stepped up to offer Paycheck Protection Program loans. Because of the pared-down SBA requirements for PPP loans, more small businesses will qualify for the SBA coronavirus loans than previous SBA loan options.
What Are Paycheck Protection Loans For?
PPP loans will help small businesses, including sole proprietors and independent contractors, and private nonprofits maintain payrolls and continue necessary payroll-related payments like rent and utilities. The full allowable uses of the loan are:
- Payroll costs: Compensation in the form of salaries, wages, commissions (or similar compensation), cash tip payments (or the equivalent)
- Healthcare costs: Any costs related to the continuation of group healthcare benefits, including insurance premiums
- Mortgage interest payments (but not payments on the mortgage principal)
- Interest on any other debt obligations incurred before February 15, 2020
Will I Have To Pay Back All Of The Money?
Costs and Payments Eligible for Forgiveness
Calculating Your PPP Loan Forgiveness AmountBecause the SBA expects a high number of applicants for PPP loans, no more than 25% of the forgiven amount can be for non-payroll costs (i.e., mortgage interest, rent, and utilities). If your business has laid off employees, that will also affect how much your loan can be forgiven. The total effect on your PPP loan’s forgiveness-eligibility depends on some complicated math that your LoanCentro funding manager can walk you through to give you the specific answer for your business.
How to Apply for PPP Loan ForgivenessTo receive loan forgiveness, a borrower must apply to their lender with documents verifying payments (on mortgage interest, rent, and utilities) and payroll (number of employees, pay rates, including IRS payroll tax filings and state income, payroll, and unemployment insurance filings). These documents must be certified from a representative of the business that the information is true.
What Are The Paycheck Protection Loan Requirements
The requirements for PPP loans are incredibly simple. Your business only needs to hit 2 criteria:
- Your business (or nonprofit) was in operation as of February 15, 2020
- You’re an independent contractor or sole proprietor, or your business/organization has either employees or independent contractors for whom they have associated payroll costs