SBA Paycheck Protection Program

SBA Paycheck Protection Program And How To Get Stimulus Money

SBA Paycheck Protection Program is getting funds from the $2 trillion stimulus package signed into law are starting to be disbursed by the federal government. Small businesses are eligible for loans that can get converted into grants if certain requirements are met. Businesses with fewer than 500 employees, 501(c)(3) organizations with under 500 employees, certain veteran organizations, freelancers, sole proprietors and gig workers are all eligible for the Paycheck Protection Program (PPP) loans. The PPP loans are different from the disaster loans. The disaster loans, which are for those in a state that has declared a state of emergency, have a 3.75% interest rate for businesses and 2.75% rate for nonprofits and will have to be paid back. If you apply for these loans, you are eligible to apply for a $10,000 grant that you would receive three days after applying. More details are available here. The PPP loans are backed by the SBA but will be provided by lenders. Interest rates cannot be higher than 4% and the maximum loan amount is $10 million. Lenders that are already part of the SBA’s 7(a) program are also qualified to make these loans. You can find a list of those lenders below. Business owners and sole proprietors can begin applying for the PPP loans on April 3, and freelancers and individual contractors can apply on April 10, according to the U.S. Chamber of Commerce. PPP loans can be forgiven if the funds are used for payroll expenses, mortgage payments, or rent and utility costs within eight weeks of receiving the loan. The forgiveness amount depends upon your headcount and can be reduced or increased based on layoffs or hiring. However, the SBA states “due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.

Federal:
1) Paycheck Protection Program: SBA loan of up to 2.5x your monthly payroll costs, forgivable if primarily applied to maintaining your staff (can also be applied to rent and other overhead expenses to a lesser extent)
2) Small Business Debt Relief Program: Covers existing and new SBA loan payments for 6 months
3) Economic Injury Disaster Loans: Up to $10,000 advance for businesses harmed by COVID-19

Paycheck Protection Program How To Apply

In this video we are talking about the paycheck protection program how to apply for the loan. The paycheck protection program can be a forgivable loan if you use it for the designated expenses. We are also doing an application walk-through step by step on how to prepare. Watch this step-by-step video now.

SBA Paycheck Protection Program Loan Information

The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.

SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.

You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.

Lenders may begin processing loan applications as soon as April 3, 2020. The Paycheck Protection Program will be available through June 30, 2020.

Who Can Apply For SBA Paycheck Protection Program

The following entities affected by Coronavirus (COVID-19) may be eligible:

Any small business concern that meets SBA’s size standards (either the industry based sized standard or the alternative size standard)
Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans organization, or Tribal business concern (sec. 31(b)(2)(C) of the Small Business Act) with the greater of:
500 employees, or
That meets the SBA industry size standard if more than 500
Any business with a NAICS Code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location
Sole proprietors, independent contractors, and self-employed persons

SBA Paycheck Protection Program Loan Details and Forgiveness

The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.

Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

This loan has a maturity of 2 years and an interest rate of 1%.

If you wish to begin preparing your application, you can download a copy of the PPP borrower application form to see the information that will be requested from you when you apply with a lender. SBA loan process

SBA Paycheck Protection Program Loan Links

Find Eligible SBA Paycheck Protection Program Lenders

Use This Form To Apply For The Paycheck Protection Program With An Eligible Lender

SBA Paycheck Protection Program

PNC Paycheck Protection Program

US Bank Paycheck Protection Program

Chase Paycheck Protection Program

You Can Now Apply Online For Small Business Administration (SBA) Paycheck Protection Program.

SBA loan process is often disappointing for borrowers

Last October the Small Business Administration removed fees on SBA-guaranteed loans under $150,000. Although last year’s average SBA loan was closer to $380,000 and the year before was around $327,000, it might be interesting to note that before the financial meltdown in 2008, the average SBA loan amount was closer to $175,000—more in line with the needs of Main Street—or the smallest small businesses rather than the biggest small businesses.

The typical SBA loan process is cumbersome and often disappointing for small business owners who slog through the documentation, wade through months of back and forth, and ultimately discover they don’t qualify for the loan they’re seeking—not because it’s too much, but often because it’s too little and too expensive for most financial institutions to bother with.

There are instances when a merchant cash advance or a credit card is the perfect solution for a small business borrower; unfortunately for many business owners this type of funding is the only credit available to them right now. Potential borrowers do need to qualify for an SBA loan, so this isn’t for everyone. However, this can be powerful motivation for small business owners who might be on the edge to get their financial house in order because a low-interest, SBA-backed loan, isn’t out of reach if they’re looking for the cash to purchase something a new, or fill dozens of other growth-related cash flow needs.

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Option that will best fit your specific needs

By reducing your student loan payments into just one monthly expense, you also be much better able to budget for other expenses as well as rent or mortgage, car payments and other new debt that you may be taking on after college graduation. This can help to give you some breathing room for paying your other debts.

There are many choices available today in terms of student borrowing, making it difficult to know which way to turn for the option that will best fit your specific needs. That is why having an expert source available can help a great deal in narrowing down the details that will move you towards your ideal private student debt consolidation.

Make a single payment only once a month

The main reason of loan consolidation is borrower’s convenience. Instead of paying too many different lenders or creditors who are charging different rates at different times of the month, you can take out one big loan and pay off all those debt accounts. Then you can make a single payment only once a month.

Before you sign on the dotted line, be sure that the costs of the new, bundled loan will truly be less than what you are already paying different creditors. For many consolidation applicants, their current credit woes mean they would not get the lowest and available interest rate. Plus, when there is nothing to secure your debt; such as your home, expect the lender to bump up the rate.

Calculate interest and all fees on all your existing accounts to determine the total of the payments you now make. Then compare those amounts with the consolidation loan numbers to make sure it truly is a better choice. And, as with any product; shop around. The bank down the street in your Citi may offer attractive rates but a check of your local lenders or some credit union could turn up better terms.

Arrange your repayment from financial institutions

Bring to trusted lender all your loans that you have and combine them into only one and pay as much as you wish. Repaying for example, now 3 debts, these ones you can merge with us to significantly reduce the monthly payment and will pay only one, which is also without any fee for a credit account, taking out debt and early repayment or extraordinary payment.

Special solutions
With consolidation loans you can merge an unlimited number of payments.

For a financial Bank, you can consolidate all your loans that you pay regular monthly installments, credit cards and overdrafts. You can combine commitments with other banks also hire companies.

After the merger commitments will only pay one lower monthly payment.
Save management’s fees of more loans.
You do not need a guarantor or collateral.
Free for you, arrange the repayment from other financial institutions.
You do not pay origination fees for maintaining the loan account or for early repayment.
Consolidation loans can repay early at any time in full or partially and totally free.
The repayment period can lie up to 96 months.
You also have the option to obtain additional funds for anything.
You choose repayment date.
In the case of full disability, loss of job or can insure the insurance company.
Repayment takes place in the simplest possible way, and it regularly from a current bank account.

If you want to consolidate, building society, mortgages and other secured loans with regular installments, use the product consolidation secured by real estate.