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Updates To Payroll Protection Program as 4/2/2020 10pm.

Updates To Payroll Protection Program as 4/2/2020 10pm.

  1. The Affiliation rule is in effect which we originally thought it was not. If you have a business that is not SBA eligible that is your primary business and would not usually be SBA eligible you cannot apply for the PPP loan. In addition the size standard applies. More info here: https://www.sba.gov/federal-contracting/contracting-guide/size-standardsWe do need to collect affiliate tax returns.
  2. Eligibility for this loan is the same as the normal 7A loan, so if you have an SBA loan already you will be ok. The exception is this loan is available for non-profits which would normally not be eligible.
  3. If you receive an EIDL loan for payroll expenses that amount will be deducted from your eligible PPP loan amount. I would encourage you to use EIDL for the other qualifying fixed expenses which are: mortgage interest, rent and utilities or expect that the EIDL will need to be paid back. Still very cheap money.
  4. 1099 employees cannot be included in the payroll expenses calculation, only W2 employees can be. 1099 employees will apply for their own PPP loans as self-employed. Please only include W2 payroll expenses in your PPP loan application (correct and resend if this applies to you)
  5. The PPP loan rate has changed from .50% for two years to now 1% for two years (on loan amount that is not forgiven)
  6. We are not pulling credit, we do not need any personal information on the owners of the business
  7. We do need business tax returns, please send the most recent filed business tax returns and 2019 Profit and Loss if not yet filed