SBA Paycheck Protection Program Loan
- Small businesses, 501(c)(3) nonprofit, a 501(c)(19) veteran’s organization, or Tribal business concern described in section 31(b)(2)(C) of the Small Business Act with not more than 500 employees, or the applicable size standard for the industry as provided by SBA, if higher.
- Sole-proprietos, independent contractors, and other self-employed individuals as eligible for loans.
- Businesses with more than one physical location qualify so long as total combined employees are below 500 employees (unless the businesses operated under NAICS code beginning with 72) or otherwise meet the SBA’s size standard based on NAICS code.
- Waives affiliation rules for businesses in the hospitality and restaurant industries, franchise that are approved on the SBA’s Franchise Directory, and small businesses that receive financing through the Small Business Investment Company (SBIC) program.
- Applies current SBA affiliation rules to eligible nonprofits.
There is no minimum credit score.
There is no collateral required.
There is no personal guarantee required.
The Credit Elsewhere Rule is not enforced.
Allowable uses of the loan:
- Payroll costs–this includes salaries, certain employee benefits, state and local taxes.
Payroll costs are capped at $100,000 on an annualized basis for each employee.
Seasonal employees and businesses in operation for less that a year are subject to a different calculation.
- Group healthcare benefits.
- Insurance premiums.
- Interest paid on a mortgage or rent (excludes any prepayment of or payment of principal).
- Utility payments.
- Proceeds may not be used to prepay debt.
The interest is 1%.
The monthly average of your annual payroll x 2.5
For example: Annual payroll is $1,200,000 (all employees <$100,000). Monthly average is $100,000. Loan Amount equals $100,000 * 2.5 = $250,000
If you have already registered for the Disaster Assistance loan, you cannot use the money from that loan for the same purpose.
Example: If you have obtained a disaster loan for payroll and insurance, you cannot use the money for the same purpose. If you contained the Disaster Loan for additional equipment purchase, then you can obtain this loan for payroll and taxes.
Any portion of the Paycheck Protection Loan that is not forgiven will have a term up to 2 years and amortize the same as 7 (a) loans, which are generally paid with fixed monthly principal and interest payments, not to exceed 1%.
Proof of payment of the following:
- Breakdown of payroll benefits (vacation, allowance for dismissal, group healthcare benefits, retirement benefits, etc.
- Most recent Mortgage Statement or Rent Statement (Lease)
- Most recent Utility Bills (Electric, Gas, Telephone, Internet, Water)
*Sole Proprietors – 1099 + proof of payroll records
Please click the Apply Now button to apply for the SBA Paycheck Protection Program Loan.
Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.