To help your business in this challenging time the U.S government has stepped up for their small business owner community. US economy can never survive without small businesses and keeping that fact in mind PPP loans have been introduced. PPP (Paycheck protection program) loans are specially designed to aid those small businesses which have suffered due to Corona Pandemics.
The first round of PPP loans has been successfully distributed among all the applicants. In first-round, the U.S government distributed over $345 BILLION among small business owners. Now the second round has been started and, in this round, $319 billion has been allotted to distribute. All those small business owners whose business has suffered due to Lockdown can apply for these loans.
How to apply for PPP loans
The Paycheck Protection Program (PPP) remains open with billions in funding still available. The second round has slowed down, and lenders now have weeks of experience—meaning it is an excellent time to apply if you have not already.
PPP loans are SBA approved. So, those people who wish to apply for this loan program must send their applications through SBA approved lenders. Once an SBA lender receives an application from a certain individual, they are going to verify that either the applicant is eligible for a loan or not.
This loan program is funded by congress. There are lots of unprecedented demands which are leading to longer SBA processing time than anyone anticipated. If you apply normally than there are chances that your PPP application can take several days to get the necessary funding. To get a loan faster in PPP funding you should apply through BitX Funding. With their strategic partner BlueVine, they can help you get fast feedback on your application.
Basic procedure to apply for PPP loan
You must ensure to get PPP that your business is highly effective with the recent outbreak of COVID-19. Your business should meet all these requirements to get a loan.
- Your business should have 500 or fewer employees.
- It can be a tribal business
- The franchise should be independent
How to apply for PPP forgiveness
The forgiveness criteria depend that how the funding of PPP loan has been used over the 8 weeks of the starting period. SBA will check these following things:
- Eligible payroll cost of your business
- Interest on the mortgage and other business debts before February 15, 2020.
- Any lease or rent you entered before February 15, 2020.
So, these are some of the basic things that you guys should keep in mind to apply for PPP loans.