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What is the Paycheck Protection Program?

Paycheck Protection Program

The Coronavirus Aid Relief & Economic Security (CARES) Act’s SBA PPP Loan has made loans available. To the small businesses, as part of the $2 trillion aid package. Unveiled in the Coronavirus Aid Relief & Economic Security. $349 billion was explicitly allotted to the Payment Protection Program (PPP).

The purpose of the PPP is to encourage small business owners. Then these loans bear a policy that if you abide by the rules. To retain or rehire employees. To businesses having less than 500 employees. Who lost their jobs amidst the COVID-19 business devastation. The SBA PPP will forgive the loan if you meet the specific requirements of this loan program.

Paycheck Protection Program 

This program adorns federally guaranteed loans. To businesses having less than 500 employees. To cover payroll and other essential costs.

The federal government mainly focuses on releasing and resonating funds. Instantly with as little red tape as possible. The funds are availed through the SBA PPP loan. Give a significant boost to small businesses. Still, the exciting part is if you use these funds. To retain your laid-off employees. Then these loans bear a policy that if you abide by the rules. Then you don’t need to repay the funds.

How Can you use These Funds 

Funds secured through Paycheck Protection Program are considered potentially forgivable. If you are using the funds. According to the laws and fulfilling the requirements. You are good to go with these loans.

Now the question arises of how you can invest these funds. You can pay off the costs. Including office utilities, cloud computing software, and the cost of worker protections. Like health insurance and facility modifications. Necessary to comply with the recent COVID-19 safety guidelines.

Are loans Primarily Coverage of the Payrolls?

Loans primarily cover payroll costs, rent, mortgage interest, and utilities. Then these loans bear a policy that if you abide by the rules.

Payroll cost includes: 

  • Salary and wage
  • Cash tips
  • Payment for family, medical or sick leave
  • Dismissal or separation allowance
  • Health Care benefits
  • Retirement benefits
  • State and local taxes

What do small business owners need to ensure for forgivable loans?

Loans availed through paycheck protection programs would be entirely forgiven. If all employees are sustained on the payroll. For the specific duration of time. Then these loans bear a policy that if you abide by the rules. And borrower can use the loan only for the following reasons only:

  • Payroll costs
  • Additional wages for tipped employees
  • Utilities
  • Rent on lease
  • Mortgage interest

Does my business fit for a loan under the paycheck protection program?

Specifically, your Business is eligible if you properly abide by the following rules:

  • To businesses having less than 500 employees.
  • If your small business meets the SBA’s size standard
  • For the individuals who have been operating. As a sole proprietor and as an independent contractor
  • A self-employed individual
  • A person who regularly carries on any trade
  • A tribal business concern that fulfills the SBA size standard

What lenders acquire for your loan application

Lenders ask applicants for a good-faith certification that entails the following ones; Specifically, your Business is eligible if you properly abide by the following rules:

  • The uncertainty of the current economic conditions amidst the pandemic. It makes the loan application request tangible. And necessary to support ongoing business operations.
  • The borrower will only borrow the loan. Aimed to retain current workers and maintain their payroll.
  • Will make payments inclusive for the mortgage, lease, and utility payments.
  • The borrower does not have a pending application for a different loan intended for the same purpose.

 Which Business Can’t Qualify for PPP loan? 

  • Multi-level Marketers
  • Businesses who lend or invest (e.g., banks and investment companies)
  • Political and policy lobbyists
  • Landlords
  • Businesses who promote religion
  • Businesses which restrict patronage
  • Gambling and drugs businesses
  • Household employers (e.g., housekeepers and nannies)
  • Businesses dealing with prurient sexual material

How Much Can a Company Receive?  

Funds obtained via the Paycheck Protection Program can be up to 2.5 times. Then these loans bear a policy that if you abide by the rules. The borrower’s average monthly payroll costs. Not to exceed $10 million benchmarks.

What are the Loan Terms?  

  • No personal guarantee or collateral is required.
  • Loans are 100% guaranteed by the government.
  • No “credit elsewhere” tests (generally required for SBA loans).
  • No borrower fees or prepayment penalties.
  • Loans are non-recourse against owners/shareholders so long as they are used for authorized purposes.
  • Specifically, your Business is eligible if you properly abide by the following rules.

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.

Specifically, your Business is eligible if you properly abide by the following rules. You can reach a loan specialist toll-free at 1-800-824-2407.  Email at [email protected] You can apply online here and we can guide you on which loans are the best fit for your business.

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