How to Get the PPP Loan

How to Get the PPP Loan

Checkout this video:

What is the PPP Loan?

The PPP loan is a government-backed loan designed to help small businesses keep their workers employed during the coronavirus pandemic. The loan is part of the CARES act, which was passed by Congress in March 2020.

The PPP loan is 100% federally guaranteed and does not require collateral. The maximum loan amount is $10 million. Loans are available for up to 2.5 times your average monthly payroll costs, including benefits.

Loan terms are 10 years with no interest or fees. Loans must be used for payroll costs, rent, mortgage interest, or utilities. At least 60% of the loan must be used for payroll.

Loan payments will be deferred for six months. After that, you will begin making monthly payments. If you use all of your loan for eligible expenses (at least 60% on payroll), you can have the entire loan forgiven.

You can apply for a PPP loan through any participating SBA-approved lender .

How to Get the PPP Loan

The PPP loan is a loan that is given to small businesses to help them with their payroll and other expenses. If you are a small business owner, you may be wondering how to get the PPP loan. The process is actually quite simple and this article will explain everything that you need to know.

Find a Lender

The first step in getting a Paycheck Protection Program (PPP) loan is to find a lender. The Small Business Administration (SBA) has approved more than 4,000 lenders to make PPP loans.

You can use the SBA’s lender match tool to find a lender near you. If you have an existing relationship with a bank or credit union, you may want to start there. You can also check with online lenders and community development financial institutions (CDFIs).

Once you’ve found a lender, you’ll need to complete an application. The application asks for information about your business, such as your business structure, revenue, and expenses. You’ll also need to provide information about your ownership stake in the business and any other businesses you own.

The application process will vary from lender to lender, but most lenders have an online application that you can complete in minutes. Some lenders may require additional documentation, such as tax returns or bank statements.

You can apply for a PPP loan through June 30, 2020.

Apply for the Loan

To apply for a PPP loan, you will need to fill out the PPP Loan Application and submit it to your lender. You can find links to the application and instructions on how to apply on the SBA’s website.

You will need to provide your lender with some basic information about your business, including your business name, address, EIN, and contact information. You will also need to provide information about your finances, including your average monthly payroll expenses and the amount of money you are requesting.

Once you have submitted your application, your lender will review it and determine whether you are eligible for a PPP loan. If you are approved, they will disburse the loan funds to you in one lump sum.

Get Approved for the Loan

To get approved for the PPP loan, you will need to fill out an application and submit it to the Small Business Administration (SBA). The application is available on the SBA website and can be completed online or downloaded and completed offline.

The application asks for basic information about your business, such as your business structure, contact information, and tax identification number. You will also need to provide information about your annual revenue, average monthly payroll expenses, and the number of full-time equivalent employees (FTEs) on your payroll.

Once you have submitted your application, the SBA will review it and determine whether you are eligible for the loan. If you are approved, you will receive a loan approval notice from the SBA. This notice will indicate the loan amount for which you are eligible and the terms of the loan.

What to Do With the PPP Loan

The PPP loan is a great way to help small businesses stay afloat during these trying times. But what do you do with the loan once you have it? In this article, we will go over some of the best ways to use your PPP loan.

Use it for Eligible Expenses

The PPP loan can be used for eligible expenses including payroll costs, rent, mortgage interest, and utilities. At least 60% of the loan must be used for payroll costs. The loan can be forgiven if the funds are used for eligible expenses and employees are kept on the payroll.

Repay the Loan

You will have to repay the loan eventually. The SBA will forgive the portion of the loan that you use for payroll and other approved expenses if you keep your employees on the payroll for eight weeks and don’t reduce their salaries by more than 25%. The loans are low-interest, but if you don’t follow the rules, you will have to pay them back with interest.