Be prepared to apply for the SBA Paycheck Protection Program Loan

 

Initial PPP Loan (First Draw)

Eligibility

An applicant is generally eligible for an Initial PPP Loan if:

  • In Operation on February 15, 2020
  • Has not previously received a PPP loan (from BitX or another Financial Institution); and
  • Has no more than 500 employees

*Additional eligibility requirements apply.

Max Loan Amount & Term

  • 5X Average monthly payroll, up to $10 million ($20 million corporate group cap)
  • 5-year term

Eligible Expenses

  • Payroll Costs
  • Business rent &lease agreements
  • Business mortgage interest
  • Business utility payments
  • Covered operational expenditures
  • Covered personal protective equipment (PPE) expenses
  • Covered property damage expenses
  • Covered supplier expenditures

Loan Forgiveness

  • May be eligible for loan forgiveness if proceeds are used on payroll and other eligible business expenses:
  • Employee and compensation levers are maintained; and
  • Minimum of 60% must be used on payroll costs

Apply Now >

Second PPP Loan (Second Draw)

Eligibility

An applicant is generally eligible for a Second PPP loan if the borrower:

  • In operation on February 15th 2020
  • Previously received a PPP Loan (from BitX or another financial institution) and will or has used the full amount only for authorized uses buy the date of disbursement or the second PPP Loan;
  • Has no more than 300 employees combined with affiliates (unless NACIS 72, 511110 or 5151 then 300 per location; and
  • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020; or if in operations for all of 2019, you many use annual gross receipts
  • Has not nor plans to receive a Shuttered Venue grant

*Additional eligibility requirements apply

Max Loan Amount & Term

  • 5X average monthly payroll, up to $2 million ($4million corporate group cap)
  • 5X average monthly payroll for Accommodations & Food Services loans (NAICS code 72), up to $2 million
  • 5-year term

Eligible Expenses

  • Payroll Costs
  • Business rent &lease agreements
  • Business mortgage interest
  • Business utility payments
  • Covered operational expenditures
  • Covered personal protective equipment (PPE) expenses
  • Covered property damage expenses
  • Covered supplier expenditures

Loan Forgiveness

  • May be eligible for loan forgiveness if proceeds are used on payroll and other eligible business expenses:
  • Employee and compensation levers are maintained; and

Minimum of 60% must be used on payroll costs

Learn more and apply

AT BitX Funding We Say Yes!

Low Rates  / Transparent Terms.
Fixed Monthly Payments.
This Is Only For:
Mid-Term Business Loans
Short-Term Business Loans
Business Lines of Credit
Startup Business Loans

BitX Offers Multiple Options To Fit Your Business Needs

Mid-Terms Loan

Loan Amount
$25k to $500KApply Now

Short-Term Loan

Loan Amount
$5k to $250KApply Now

Business Line of Credit

Loan Amount
$5k to $250KApply Now

Revolving Line of Credit

Loan Amount
$5k to $250KApply Now

Minimum Requirments

To pre-qualify for a loan with BitX Funding, you must have been in business for at least 1 years, FICO score of at least 650+ and or startups welcome.

  • TIME IN BUSINESS 1 YEARS
  • MINIMUM FICO SCORE 650
  • BUSINESS TAX RETURNS
    1 YEARS
  • PERSONAL TAX RETURNS
    1 YEARS

Compare our loans with other online lenders

BitX Funding  Online Lenders
Loan Size 5k to 5MM 2k to $500k
APR 6.75% to 30% 9% to 99%
Origination Fee Up to 10% Up to 15%
Repayment Terms Up to 20 years 6 to 60 months
Repayment Schedule Daily, weekly, monthly payments Daily or weekly

Who Qualifies for a Paycheck Protection Program Loan?

In order to qualify for a PPP loan, you must be a small business (including nonprofits, veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors) with 500 or fewer employees, or no greater than the number of employees set by the SBA as the size standard for certain industries.
Your business must have been operational by February 15, 2020. The “covered period” for these loans will run from February 15 to June 30, 2020.

Paycheck Protection Program Loan Rates and Terms

Loans disbursed under this program will have the following terms:

  • Interest rate of 1%
  • Maturity of 2 years
  • First payment deferred for six months
  • No collateral
  • No personal guarantees
  • No borrower or lender fees payable to SBA

Keep in mind: Business owners who take out these are eligible for loan forgiveness for the amount they spent on payroll costs, rent on a leasing agreement, payments on utilities, and additional wages to tipped employees.

That means your loan for these costs will essentially be converted into a grant.

You will need to demonstrate how you have used your funds to finance payroll and other eligible costs in order to receive loan forgiveness.

What do payroll costs mean? The following compensation is considered eligible payroll costs under this program:

  • Salary, wage, commissions, or similar compensations
  • Payment of cash tips or equivalent
  • Payment for sick, vacation, parental, family, or medical leave
  • Dismissal or separation allowance
  • Payments for group health care benefits, including insurance premiums
  • Payments for retirement benefits
  • Payments of state or local tax on employee compensation

Sole proprietors, independent contractors, and self-employed workers will also be able to take out a PPP loan for compensation or income that is not more than $100,000 in one year, as prorated for the covered period.

As for what payroll costs are not included: Compensation of an individual employee in excess of $100,000 annual salary; payroll taxes, railroad retirement taxes, and income taxes; compensating an employee that lives outside the U.S.; qualified sick leave or family leaves wages for which a credit is allowed under the Families First Coronavirus Response Act.

 

 

How Much Can I Borrow Through the Paycheck Protection Program?

The goal of this loan is to help businesses pay for their payroll and other overhead costs. Therefore, loan amounts can be up to 2.5x the business owner’s average monthly payroll costs, not exceeding $10 million.

For your loan to be forgiven by the SBA, you must maintain your payroll, or rehire the employees you laid off during the beginning weeks of the pandemic by June 30.

The amount of loan forgiveness will be lowered if you reduce workforce, or reduce wages paid to those employees by an amount greater than 25%.

The U.S. Chamber of Commerce created a helpful guide on how to calculate payroll costs and how loan forgiveness can be reduced.

Details of Paycheck Protection Program Loans

The Paycheck Protection Program was created and funded by legislation known as the CARES Act, which was signed into law on March 27 as part of phase three of the federal government’s response to the coronavirus pandemic.

The outbreak of the coronavirus across the U.S. has crippled millions of small businesses, forcing them to work under restrictions, with limited staff, and with virtually no foot traffic. These businesses are facing indefinite limitations and perhaps permanent closure if they are unable to make payroll, pay their rent, and meet other financial obligations.

Through the CARES Act, the SBA received $349 billion in funding that it used to finance loans made by thousands of SBA lenders across the country to those small businesses.

The SBA has long been known to small business owners as the best place to find low-cost financing on favorable terms. Even by those standards, PPP loans are exceptionally friendly to small business owners—since this pandemic has leveled small businesses across the board, through no fault of their own.