How to Apply for an SBA Loan with the Paycheck Protection Program for COVID-Affected Businesses

Summary

A Groupon Merchant post dated April 02, 2020, titled How to Apply for an SBA Loan with the Paycheck Protection Program for COVID-Affected Businesses. It states that Congress approved $349 billion for the Paycheck Protection Program in the Coronavirus Aid, Relief, and Economic Security (CARES) Act and that businesses with fewer than 500 employees are eligible. It lists terms of the loans: up to 2.5 times average monthly payroll, no origination fees, payments deferred for 6 months, a maturity of 2 years and an interest rate of 1%. It says the program goes live on April 3rd and accepts applications through June 30th, and that Groupon has partnered with Fundera, which hosts live Q&A sessions on Zoom starting Apr 7, 2020.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

Posted In

By Groupon Merchant

April 02, 2020 23:00

How to Apply for an SBA Loan with the Paycheck Protection Program for COVID-Affected Businesses

Apply for an SBA loan with Fundera today

With the novel coronavirus (COVID-19) pandemic bringing economic activity to a halt across many sectors, Congress has approved $349 billion in loans for the Paycheck Protection Program (“PPP”) to help business owners secure emergency capital to cover their payroll, rent, and other fixed costs. These SBA loans may be forgiven if used appropriately , so this is money that every business should try to take advantage of. Read on to learn:

- What financing is available
- Who is eligible
- How to apply
- Which lenders can offer assistance

What Is the Paycheck Protection Program?

As part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, Congress has approved $349 billion for the Paycheck Protection Program. One way to think of this program is as an alternative to unemployment. Rather than pay out massive unemployment benefits, the government can pay out a similar amount to small businesses to help cover expenses like payroll, rent / mortgages, and utilities . This SBA loan can help keep people on payrolls and avoid a mass rehiring process once the economy picks back up, so small-to-medium businesses can hit the ground running when that time comes.

These funds are paid out in the form of loans facilitated by SBA-approved lenders, but the loans can be forgiven if the money is spent appropriately , so they could be essentially very low-cost grants to the borrower . This is the most impactful measure we’ve seen yet in the economic response to COVID-19, so every SMB should look into applying for this program.

Who Is Eligible for the PPP?

Any US small-to-medium business with fewer than 500 employees is eligible for PPP funds. Some multi-location businesses with more than 500 total employees but fewer than 500 at each location are eligible, as well.

The loans are awarded on a first come, first served basis (subject to lender approval), and there’s sure to be a rush of applications, so you’ll want to act fast to have the best chance of receiving the funds you need.

What Are the Terms of This SBA Loan?

The funds approved for the PPP will be distributed as small business loans facilitated by existing SBA-approved lenders, including banks, credit unions, and some additional financial tech companies and microlenders. Here’s a breakdown of the terms of this SBA loan :

- The amount offered may be up to 2.5 times your average monthly payroll .
- You pay no origination fees
- Loan payments are deferred for 6 months and no collateral is required.
- Your SBA loan may be forgiven if you meet these conditions: You have used the funds for approved purposes (payroll, rent, mortgage interest, utilities). At least 75% of the forgiven amount was spent on payroll. You maintain your employee headcount and salary levels for eight weeks (forgiveness will be reduced if either of these decline).
- Otherwise, the loan has a maturity of 2 years and an interest rate of 1%.

How Can I Apply for the Paycheck Protection Program?

The PPP goes live on April 3rd , and will continue accepting applications through June 30th . However, loans are awarded on a first come, first served basis (subject to approval), and it’s unclear what will happen if funding dries up before June 30th, so you shouldn’t delay applying any more than necessary. In fact, the SBA has made a sample application form available online so you can prepare for what kind of information you’ll be asked to provide.

Additionally, Groupon has partnered with Fundera who makes the loan application and approval process as fast and seamless as possible. Best of all, there is no cost associated with the application process— it’s free and easy to submit. In addition, Fundera is hosting a twice-weekly live Q&A on Zoom to answer business owners’ questions and inform them of updates to the program. Here’s the schedule:

- Apr 7, 2020 01:00 pm (ET)
- Apr 9, 2020 01:00 pm (ET)
- Apr 14, 2020 01:00 pm (ET)
- Apr 16, 2020 01:00 pm (ET)
- Apr 21, 2020 01:00 pm (ET)
- Apr 23, 2020 01:00 pm (ET)
- Apr 28, 2020 01:00 pm (ET)
- Apr 30, 2020 01:00 pm (ET)
- May 5, 2020 01:00 pm (ET)
- May 7, 2020 01:00 pm (ET)
- May 12, 2020 01:00 pm (ET)
- May 14, 2020 01:00 pm (ET)
- May 19, 2020 01:00 pm (ET)

Fundera is a trusted leader in the SBA lending space, and we’re confident that they can help you navigate the process as quickly as possible. Click here to get started right away.

Fundera helps connect small businesses to capital through its marketplace of lenders, who provide SBA loans, term loans, and business lines of credit. Funding subject to lender approval. Lenders will make funding decisions in their sole discretion, and Fundera has no role in any decision by lenders to extend or refuse to extend an offer of funding.

The information presented here is sourced from the websites of the U.S. Department of the Treasury and the U.S. Small Business Administration (SBA), both accessed 04/02/2020.

Any views, opinions, advice, or endorsements herein are the author(s)’s and are not necessarily the views of Groupon or its partners.

Also be sure to check out our other COVID-related updates, guides, and resources:

Post a comment

File and source

File

sba-loan-paycheck-protection-program-covid-19-fundera_f967d9a394286910.html

Size

67,918 bytes

SHA-256

a430c37ad6d99497ed09d3cc05aa86ea744796a166838bbb9299852f6abe900e

Our copy

sba-loan-paycheck-protection-program-covid-19-fundera_f967d9a394286910.html

Original

www.groupon.com