Over 3 billion people are affected by Covid-19 financially. Most of these people run their own small businesses. The USA is one of those countries which is affected most by this Corona outbreak. Millions of small businesses just in the US are facing critical financial situations.
For these affected people SBA PPP Loan program has been launched. US government has announced a $310 billion expansion in their paycheck protection program loan, and you can apply for it from 27th April. Previous $359 billion has been successfully delivered to all those business owners who applied for them through CARES ACT.
What is the PPP loan program?
It is a type of small business loan given by SBA for those small businesses which have suffered due to lockdown in the US. All those people who do not make enough money to run their business during this Quarantine pandemic and pay wages to their employees can apply for this loan. SBA PPP loan program comes with just a 1% interest rate annually or loan forgiveness.
Ways to get an SBA PPP loan.
There are few simple ways through which you guys can apply for these PPP SBA loans. All these ways are described below
- Determine the eligible amount for yourself
This is a very crucial step to get an SBA PPP loan. You must determine the amount you are going to apply for and are you eligible for it or not. The maximum amount that you can apply for in PPP SBA loan is the average monthly payroll X 2.5 factor. It will be a better idea that you do all this calculation before you apply for the loan. These SBA PPP loan applications are particularly important to fill correctly.
- Try to Apply through SBA 7a approved lenders
Instead of applying through on your own, it will be a good idea that you apply through SBA 7(a) approved lenders. This will increase your chances to get approved for the SBA PPP loan. So, instead of going for the loan on your own try to get help from SBA 7(a) approved lenders.
- Try to calculate eligible expenses that you are going to cover by PPP loan
PPP loan has another benefit that you can also apply for its forgiveness. So, make sure that you use the money of PPP loan appropriately on your business. This way you can apply for its forgiveness. Try to use your loan appropriately just for the sake of your business instead of using it on your personal expenses.
- Proper paperwork
When you are applying for a PPP loan it is especially important to gather all the necessary paperwork. It is your duty to read all paperwork before you apply for the loan. To apply for SBA PPP loan, you will need
- At least 2 years of tax return
- 2019 four quarters 941’s and 1st QTR 2020 941 to calculate average monthly payroll.
- Company legal structure documents.
- A prove that will show that COVID-19 has affected your business financially. This will be done by comparing sales of February 2020 to the previous months.
- Keep the follow-ups
Once you applied for the loan do not be shy to keep the follow-ups. Try to gain information about your application. As this program is getting millions of applications. So, it is a chance that your application may not get approved but if you keep proper follow up. It will help to increases the chances of your application getting approved for the SBA PPP loan. You can also apply with BitX Funding to increase your chances as they are a Fintech lender and you don’t have to have a prior relationship to process your application.
BitX Funding is the online marketplace for small business owners looking to fund a project. We specialize in connecting small business owners with lenders who will compete for your business. We believe small business owners drive the economy and we are passionate about helping your company reach its full potential. You can reach loans specialist by toll-free at 1-800-824-2407, or email at firstname.lastname@example.org or applying online here and we can guide you on which loans are the best fit for your business.