Covid-19 affected Over 3 billion people financially. Most of these people run their small businesses. The USA is one of those countries 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 the 27th of April. The previous $359 billion was 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 by SBA for small businesses that have suffered from lockdown in the US. All those 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 a few simple ways through which you guys can apply for these PPP SBA loans. Find all the ways below.
Determine the eligible amount for yourself
This is a very crucial step to getting an SBA PPP loan. You must determine the amount you will apply for and whether you are eligible for it. The maximum amount you can apply for in a PPP SBA loan is the average monthly payroll X 2.5 factors. It will be better to do all these calculations before applying 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 on your own, applying through SBA 7(a) approved lenders will be a good idea. This will increase your chances of getting approval for the SBA PPP loan. So, instead of going for the loan on your own, try to get help from SBA 7(a) lenders.
Try to calculate eligible expenses that you are going to cover in a PPP loan.
PPP loan has another benefit that you can also apply for its forgiveness. So, make sure you use the money from the 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 expenses.
When applying for a PPP loan, gathering all the necessary paperwork is especially important. You must read all paperwork before you apply for the loan. To apply for an SBA PPP loan, you will need
- At least two years of tax return
- Two thousand nineteen four quarters 941’s and 1st QTR 2020 941 to calculate average monthly payroll.
- Company legal structure documents.
- A proof showing 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 apply 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 approval if you keep proper follow-up. It will help to increase the chances of your application to getting approval 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 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.