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How To Apply For Paycheck Protection Program (PPP)

Paycheck Protection Program

Paycheck Protection Program (PPP) Information Sheet

BitX Funding helps small businesses through the COVID-19 outbreak and helps them through a very stressful time. We receive calls from small businesses with W2’s, 1099. Sole proprietors are confused about where to begin. BitX platform and customer service are here to make a frictionless process for the Paycheck Protection Program Application.

For business owners to apply for the Paycheck Protection Program fast and with full transparency. The program is every changing as we just learned that in a very short time. The program has run out of funds. But business owners should keep pressing forward and process their applications. So to be in a position for when the Congress and Senate approve more funding.

Large banks are providing very little support or guidance to the business community. So we recommend putting in your application with BitX to see who funds first.

The Paycheck Protection Program (“PPP”) authorizes up to $349 billion in forgivable loans. To small businesses to pay their employees during the COVID-19 crisis. All loan terms will be the same for everyone.    

The Paycheck Protection Program (“PPP”) will forgive the loan amounts as long as:

The loan proceeds cover payroll and most mortgage interest, rent, and utility costs over the eight weeks after the loan is made. And employee and compensation levels are maintained.

Payroll costs are at $100,000 on an annualized basis for each employee. Due to the likely high subscription, not more than 25% of the forgiven amount may be for non-payroll costs.

Loan payments will be deferred for six months.

When can I apply?

Small businesses and sole proprietorships can apply for and receive loans to cover their payroll and other expenses through existing SBA lenders.
From April 10, 2020, independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.
Other lenders will be available to make these loans as soon as they get approval and enrollment in the program.

Where can I apply?

You can apply through any existing SBA lender or any federally insured depository institution, federally insured credit union, and Farm Credit System institution participating. Other lenders will be available to make these loans once they get approval and enroll in the program. You should consult with your local lender as to whether it is participating. Visit BitX Funding to apply now.

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Who can apply?

All businesses – including nonprofits, veterans organizations, Tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors – with 500 or fewer employees can apply.

Businesses in certain industries can have more than 500 employees if they meet applicable SBA employee-based size standards for those industries (HERE for additional detail).

For this program, the SBA’s affiliation standards are waived for small businesses (1) in the hotel and food services industries (click HERE for NAICS code 72 to confirm); or (2) that are franchises in the SBA’s Franchise Directory (click HERE to check); or (3) that receive financial assistance from small business investment companies licensed by the SBA. Additional guidance may release as appropriate.

What do I need to apply?

You will need to complete the Paycheck Protection Program loan application and submit the application with the required documentation to an approved lender that is available to process your application by June 30, 2020. Click HERE for the application.

What other documents will I need to include in my application?

You will need to provide your lender with payroll documentation.

Do I need to look for other funds before applying to this program?

No. We are waiving the usual SBA requires that you try to obtain some or all of the loan funds from other sources (i.e., we are waiving the Credit Elsewhere requirement).

How long will this program last?

Although the program is open until June 30, 2020, we encourage you to apply as quickly as possible because a funding cap and lenders need time to process your loan.

How many loans can I take out under this program?

Only one. To small businesses to pay their employees during the COVID-19 crisis.

What can I use these loans for?

You should use the proceeds from these loans on your:
Payroll costs, including benefits;
Interest on mortgage obligations incurred before February 15, 2020;
Rent, under lease agreements in force before February 15, 2020; and
Utilities, for which service began before February 15, 2020.

What counts as payroll costs?

Payroll costs include:

Salary, wages, commissions, or tips (capped at $100,000 annually for each employee).
Employee benefits include costs for vacation, parental, family, medical, or sick leave; an allowance for separation or dismissal.

Payments are required for the provisions of group health care benefits, including insurance premiums; and payment of any retirement benefit.
State and local taxes are assessed on compensation.
For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 annually for each employee.

Does the PPP cover pay sick leave?

Yes, the PPP covers payroll costs, which include employee benefits such as costs for parental, family, medical, or sick leave.

However, it is worth noting that the CARES Act expressly excludes qualified sick and family leave wages for which a credit is allowed. Under sections 7001 and 7003 of the Families First Coronavirus Response Act (FFCRA) (Public Law 116–127).
Learn more about the FFCRA’s Paid Sick Leave Refundable Credit online.

How large can my loan be?

Loans can be for up to two months of your average monthly payroll costs from the last year plus an additional 25%. To small businesses to pay their employees during the COVID-19 crisis.

That amount is subject to a $10 million cap. If you are a seasonal or new business, you will use different application periods for your calculation. Payroll costs will be at $100,000 annualized for each employee.

How much of my loan will be forgiven?

You will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utility payments over the eight weeks after getting the loan.

Due to the likely high subscription, not more than 25% of the forgiven amount may be for non-payroll costs. You will also owe money if you do not maintain your staff and payroll.

Your loan forgiveness will be reduced if you decrease your full-time employee headcount. Your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019.
You have until June 30, 2020, to restore your full-time employment and salary levels for any changes made between February 15, 2020, and April 26, 2020.

How can I request loan forgiveness?

You can submit a request to the lender that is servicing the loan. The request will include documents verifying the number of full-time equivalent employees, pay rates, and the payments on the eligible mortgage, lease, and utility obligations. You must certify that the documents are true and that you used the forgiveness amount to keep employees and make eligible mortgage interest, rent, and utility payments. The lender must decide on the forgiveness within 60 days.

What is my interest rate?

1.00% fixed rate.

When do I need to start paying interest on my loan?

All payments are deferred for six months; however, interest will continue to accrue.

When is my loan due?

In 2 years.

Can I pay my loan earlier than two years?

Yes. There are no prepayment penalties or fees.

Do I need to pledge any collateral for these loans?

No. No collateral requirement.

Do I need to guarantee this loan personally?

No. There is no personal guarantee requirement. ***However, if the proceeds are used for fraudulent purposes, the U.S. government will pursue criminal charges against you.***

What do I need to certify?

As part of your application, you need to certify in good faith that:

Current economic uncertainty makes the loan necessary to support your ongoing operations.
The funds will be to retain workers and maintain payroll or to make the mortgage, lease, and utility payments.
You have not and will not receive another loan under this program.

Documentation

Documentation that lenders verify, the number of full-time equivalent employees on payroll and the dollar amounts of payroll costs, covered mortgage interest payments, rent payments, and utilities for the eight weeks after getting this loan.
25% of the forgiven amount may be for non-payroll costs. Loan forgiveness will be provided for the sum of documented payroll costs, mortgage interest payments, rent payments, and utilities to small businesses to pay their employees during the COVID-19 crisis. All the information you provided in your application, supporting documents, and forms is true and accurate. Knowingly making a false statement to get a loan under this program is punishable by law.
You acknowledge that the lender will calculate the eligible loan amount using the submitted tax documents. You affirm that the tax documents are identical to those you submitted to the IRS. And you also understand, acknowledge, and agree that the lender can share the tax information with the SBA’s authorized representatives, including the SBA Office of Inspector General’s authorized representatives, for compliance with SBA Loan Program Requirements and all SBA reviews.


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 are passionate about helping your company reach its full potential.
You can reach a loan specialist toll-free at 1-800-824-2407 or email at [email protected] or apply online here, and we can guide you on which loans are the best fit for your business.

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