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.

Low Interest Rate

Get an ultra low 1% Fixed rate APR for the life of the loan

Payment Deferral

Payments deferred for 6 months, up to 12 months for qualifying borrowers

Loan Forgiveness

No repayment for qualified uses like payroll, mortgage interest, rent, and utilities

Start your pre-application now

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)
  • Rent
  • Utilities
  • Interest on any other debt obligations incurred before February 15, 2020

Will I Have To Pay Back All Of The Money?

PPP loans are eligible to be forgiven, up to 100% of the loan principal. Here’s what you need to know about what qualifies, how to apply, and how to calculate your potential PPP loan forgiveness.

Costs and Payments Eligible for Forgiveness

  • Payroll costs (as listed above)
  • Mortgage interest payments (but not payments on the principal)
  • Rent
  • Utilities
  • Calculating Your PPP Loan Forgiveness Amount

    Because 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 Forgiveness

    To 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:

    1. Your business (or nonprofit) was in operation as of February 15, 2020
    2. 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

    That’s all.

    How Are Paycheck Protection Program Loans Calculated?

    PPP loans are calculated based on 2.5 times your business’s (or organization’s) monthly payroll costs. Payroll costs include compensation, as outlined above, along with other payroll-related costs like retirement payments, state and local taxes on payroll, payment for vacation or paid leave, group healthcare costs, and allowances for separation or dismissal.

    Are SBA PPP Loans the Same as Disaster Loans?

    PPP loans differ from Economic Injury and Disaster Loans (EIDLs). PPP loans are available to all US businesses based on the requirements above.
    EIDLs are also available for small businesses in designated areas (right now that’s classified as all US states and territories) that have suffered an economic hit because of the COVID-19 pandemic, though the requirements are more stringent. Unlike PPPs, EIDLs/disaster loans must be repaid in full.

    Can You Get a PPP Loan If You Have Other Loans?

    Yes, you can qualify for a PPP loan even if you already have other loans, including other SBA loans. You cannot use the funds from PPP loans and other loans for duplicate use at the same time. For example, if you use a disaster loan (EIDL or loan advance) to pay your business’s May rent, you cannot also apply for a PPP loan to cover May rent.

    Do You Have to Prove Economic Injury?

    With an EIDL, or disaster loan, small businesses need to prove they’ve experienced “substantial economic injury.” Unlike disaster loans, PPP loans under the CARES Act are funded with the presumption that your business has experienced the negative impact of COVID-19. They are not tied directly to economic losses suffered as a result of the disaster.

    Pre-Apply For Your PPP Loan Now

    Use our easy online application on the next page