Small businesses can breathe a (small) sigh of relief this afternoon with news out of Washington, D.C. that an additional round of funding has been allocated for Paycheck Protection Program (PPP) loans.
The law, signed by President Trump on 4/24/20, authorizes an additional $310 billion to the Paycheck Protection Program, $50 billion to the Economic Injury Disaster Loan (EIDL) program and $10 billion for EIDL grants.
Notably, $60 billion of the allocated funds have been set aside for community lenders, including state and federal credit unions.
So…what now? These funds are expected to go as quickly as, if not even more quickly than, the first round, so it’s critical you act now to take advantage.
We’ve rounded up key resources to help you beat the clock and gain access to much-needed relief.
Get Your Application Materials Ready
The loan application requires payroll data to support the average monthly payroll calculations. We’ve provided our customers with ready-made payroll data reports to facilitate their loan applications.
- If you’re a SurePayroll customer, the yellow banner on your dashboard will take you directly to your ready-made PPP payroll data report.
- Not a SurePayroll customer? If you haven’t yet applied and are interested in doing so, you’ll want to collect your payroll data from your existing or prior payroll provider, or from your business financial statements if you do not have a payroll provider.
Find an SBA-Approved Lender
To apply for a PPP loan, you must work with an SBA-approved lender. We recommend you turn first to your established banking relationships.
However, if your preferred lender is not offering these loans, or if you are having trouble finding an SBA-approved lender, we’ve teamed up with Fundera, and Lendio to streamline your ability to connect with an SBA-approved lender1.
Fundera, and Lendio have established processes and dedicated lender networks to support the Paycheck Protection Program, which means when you work with them to find a lender for your PPP loan you can rest assured that:
- The lenders you are matched with are ready and able to support PPP loan applications
- The lenders you are matched with are accepting PPP loan applications from new borrowers (meaning you don’t need to have a pre-existing banking or credit relationship)
- Your loan application materials will be pre-reviewed by their team of specialists to ensure that when your application is submitted to the lender it is complete per their requirements
Understand Your Potential Forgiveness
Whether you have recently received much-needed funds through the Paycheck Protection Program (PPP), or are hoping to apply in the future as additional funds become available, a key benefit of the loans under the program is the potential opportunity for forgiveness of the loan, in whole or in part. The amount of the PPP loan eligible for forgiveness under the Coronavirus Aid, Relief, and Economic Security (CARES) Act is based on many factors.
Head over to our Maximizing Paycheck Protection Program Loan Forgiveness hub to access resources to help you understand and maximize your forgiveness potential, including:
- A small business scenario that illustrates how forgiveness works
- FAQs about PPP loan forgiveness
- A Return to Work Checklist to help in rehiring furloughed or laid off employees to maximize your PPP loan forgiveness potential
- A PPP Loan Forgiveness Estimator to estimate how much of your PPP loan may qualify for forgiveness
Rest assured that when it comes to helping you understand and seek relief through COVID-19 response legislation, we have your back. We will continue to provide updates to you as product updates and additional guidance are available.
1Not available in RI, NV, ND, VT, and CA (Fundera Only). Clients in these states may connect directly with Fundera, and Lendio. In some cases, SurePayroll may receive compensation from an SBA-approved lender if you receive a PPP loan, subject to applicable laws.
The content contained within this email reflects the most current information at the time of its release. Any information provided in this email may no longer be viable subsequent to its issuance.