Great for —

• Employers with less than 500 employees (sole proprietors and independent contractors are eligible for their own loans)

• No fee for paying off early

• First payment is not due for the first 6 months

• Collateral and personal guarantees are not required 

• Eligible for forgiveness on amounts spent during the first eight-weeks after obtaining the loan for —

  • Payroll Costs (Must be at least 75% of the amount)

  • Mortgage payments

  • Rent payments 

  • Utility payments

• Typically businesses must prove they can’t access loans elsewhere but this has been removed for COVID-19 

Things to Watch Out For —

• For startups that have raised Venture Capital, you may have to include employees of fellow portfolio companies in headcount. If this exceeds the 500-person cutoff, then you’re ineligible for a loan. Read more.

• Forgiveness will be reduced by the number of employees laid off during the first eight-weeks after obtaining the loan and if employees’ salaries are reduced by more than 25%

  • Borrowers that re-hire employees when they obtain a loan will not be penalized for having a reduced payroll.

• Salary & Wages for US Employees with Salary over $100,000 can only include up to $100,000

• Independent contractors will be eligible to seek funding on their own. Your business would not include payments to independent contractors as part of your payroll calculations.

• This will only support payroll and rent/mortgage payments. For companies that have burn beyond these expenses, it will be important to make sure you have cash in the bank to cover those expenses

• This loan is only 100% government guaranteed until 12/31/2020. After that, the government will only cover 85% for loans under $150k and 75% for loans over $150k. We are still trying to understand what this means for the business if it is unable to pay back the loan. In other SBA loans, the business owners may become personally responsible for the loan.

• If you knowingly use PPP funds incorrectly, the government will bring criminal charges against you.

• You can only take one PPP loan under this program. If you apply through multiple lenders, make sure you do not take more than one loan.

To estimate how much you might be eligible for, please use this spreadsheet — Payroll Protection Loan Size

Note: Use gross payroll amounts before income taxes, etc.

What documents you need to apply —

Company Documents

All applicants are required to upload the following.

Payroll Report —

Payroll register for the full 2019 year
Payroll register for all available months in 2020
A payroll report that shows the payroll details for each employee over the time period

ID verification — Driver’s License or other government issued identification

Employee Documents

Upload all that apply to you —

If have employees — All 2019 IRS Form 941s or 2019 IRS Form 944

If you are an independent contractor — 1099-MISC

If you are a self-employed — 2019 IRS 1040 Schedule C 1099-MISC for each self-employed owner

Process to apply for a loan —

Many banks struggled with providing PPP loans in the first wave of funding, but our partner, Lendio provided funding for 70k small businesses. To ensure you can get an application submitted quickly and completely, all online —

Get started with your Payroll Protection Loan application →

Find a Local Lender →

To take advantage of Loan forgiveness, you will want to track and submit to lender —

1. Keep all receipts to track payments made

2. Breakdown how the loan has been used

3. Certification from lender that the loan was used correctly

For an estimation of the forgiveness amount, use this model.

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