SBA PPP Paycheck Protection Program Loan
SBA Paycheck Protection Program (PPP) Loans
Now Accepting: 1st & 2nd Round Applications
Under the CARES Act, the US Small Business Administration (SBA) will fund up to $2 million for eligible expenses at 1% annual percentage rates over 5 year terms. Our team is now accepting applications for both first and second round applicants. Up to 100% of the loan proceeds used for designated expenses are forgivable. No collateral or personal guarantee required. Most business and nonprofits prescribed by the SBA are eligible to apply so long as they have less than 300 employees and show at least a 25% reduction in revenue. It is absolutely imperative that you get in your application now and that you have uploaded the appropriate information.
Your local banks missed this first round of disbursements because of the lack of technology. USFS is here to serve you moving forward and is still going!
Don’t let Coronavirus stop your business. Get back on track today with an SBA PPP (Payroll Protection Program) Loan through US Fund Source.
- *At this time, US Fund Source is offering Paycheck Protection Program (“Program”) loans on behalf of one or more approved U.S. Small Business Administration (“SBA”) lenders. Loan agreements will identify the lender to small businesses at signing, and any loan made under the Program must also be submitted to and approved by the SBA. Program funds are limited. US Fund Source does not guarantee that applications will be processed and submitted before Program funding is no longer available. There is no cost to you to apply for a Program loan. Applying with US Fund Source does not limit you from applying with other lenders and/or platforms.
- **As of 4/23/2020, 6:20 PM EST-The House just passed another $480 billion in coronavirus relief. The US Small Business Administration (“SBA”) is about to approve additional funding for the PPP Program. The first round of funding was exhausted in two weeks, and we expect that the second round will be exhausted just as quickly. PPP loans are being funded on a first-come, first-serve basis so submit your PPP loan application right away with US Fund Source. Any delay will hurt your chances of being approved for a loan.
Paycheck Protection Program (PPP) Loans
The federal government has stepped up to help small businesses across the United States with Paycheck
Protection Program loans. With this program, qualified applicants can receive up to 2.5x their
average monthly payroll expenses. The SBA has lowered requirements for PPP
loans, enabling more small businesses than ever before to qualify for federally
Paycheck Protection Program Loan Requirements
What Paycheck Protection Program Loans Are For
PPP loans help small businesses, including sole proprietors and independent contractors, and private nonprofits maintain payrolls and other expenses like rent and utilities. The full allowable uses of a PPP loan are:
How are Paycheck Protection Program Loans Calculated?
PPP loans are up to $10,000,000 and are calculated based on 2.5 times your business’s (or organization’s) average monthly payroll costs. Payroll costs include compensation, as outlined above, along with other payroll-related costs like retirement contributions, state and local taxes on payroll, payment for vacation or paid leave, group healthcare costs, and allowances for separation or dismissal. For a comprehensive outline of what is used and excluded, you can email us and get a copy of our PPP calculator!
Are SBA PPP Loans the Same as Disaster Loans?
Do You Have to Prove Economic Injury?
Paycheck Protection Program Forgiveness
PPP loans are eligible to be forgiven, up to 100% of the loan principal if the funds are used appropriately. US Fund Source is here to provide you with the information you need to know about what qualifies, how to request loan forgiveness, and how to calculate your potential PPP loan forgiveness.
Costs and Payments Eligible for Forgiveness
Any costs incurred in the first 8 weeks after you receive your loan of the loan under these set categories are eligible for forgiveness:
Calculating Your PPP Loan Forgiveness Amount
The simple answer is, to be eligible for loan forgiveness, you must maintain your payroll levels and employee headcount for 8 weeks following receipt of the loan. You must be able to document that your PPP funds were used on the eligible expenses listed above. Further, 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.
Please reach out to your US Fund Source representative if you want want additional guidance specific to your business.
How to Apply for PPP Loan Forgiveness
To receive loan forgiveness, a borrower must submit a request 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.
When Do Paycheck Protection Program Loan Payments Start?
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. However, if you received an Economic Injury Disaster Loan (EIDL) between January 31, 2020 and April 3, 2020, you will be required to use your PPP loan to refinance your EIDL loan. We believe this is advantageous given the lower interest rate and potential forgiveness of the PPP loan.