Updated 4/24, 1:45pm EST
Update: Congress has allocated an additional $310 billion to replenish the SBA’s Paycheck Protection Program effective 4/24. This can be accessed through the same banks as the prior round of funding. In some cases, banks are approving and funding applications received during the prior round and in other cases businesses need to reapply. Businesses should follow up with their bank to confirm.
Industrious has been tracking the launch of the CARES Act (full blog post here), with a particular focus on the Payment Protection Program, the $350 billion dollar loan program for small businesses. Now that the program has been defined and initial SBA guidance sent to the banks, our attention is focused on providing information that may help you apply and access available funds.
As always, the information below is intended to serve as a starting point. You should consult with your advisors, supplement with your own research and treat everything as subject to change and further clarification from Treasury, SBA and banks.
Are you qualified?
- Businesses with less than 500 employees (subject to Affiliation rules, which may impact Private Equity or Venture Capital-backed companies). This includes full and part-time employees, in addition to those who work on a seasonal or temporary basis.
- You must have business expenses that are covered by the loan (these include payroll, rent, mortgages, utilities, and debt obligations and must have been made before February 15th)
When can you apply?
- Applications for the PPP will open Friday April 3rd through existing approved SBA lenders (see here). That said, many banks have stated that they will require additional SBA guidance and time to digitize their application process.
- We expect that most major existing SBA lenders will have their digital applications ready beginning next Monday, April 6th. Smaller banks will take longer.
- Please note that many SBA lenders are currently only planning on immediately opening up applications to existing customers.
- If you are self-employed or an independent contractor, the program will open April 10th.
- The program has a close date of June 30th. It’s best to apply soon, since the program is currently capped at $350B.
What is the application process like?
- Unlike other SBA loans, you do not apply through the SBA directly, but through approved banks. You can see SBA’s new approved lender tool here you can see the Top 100 most active SBA lenders here. The SBA has said that they will expand to approve additional banks, credit unions, and S&Ls, but this will take some time.
- You’ll need to fill out an application (you can see a sample here on the SBA website, but note that to apply you will need to fill one out directly via a bank)
- You’ll need to provide payroll calculations and documentation such as IRS filings (including 1099-MISC) and the certifications required.
What bank options do I have?
- If your existing bank is an approved SBA lender: It is anticipated that it will be fastest to work directly through them.
- If you do not have an existing bank or they are not an approved SBA lender: You have a few options, including:
- Applying through an approved SBA lender that is accepting new customers: As of today, we believe that Bank of America, First United and Ameris are among the banks that are accepting PPP applications from new and existing customers.
- Applying through a fintech company that is partnered with an approved lender.
- Asking your existing bank if they are applying for approval and waiting.
- For a comprehensive list of banks currently accepting PPP loan applications, see this link.
Can Industrious help? Below are links and partners that can help you navigate the PPP loan process, we will continue to build this network of resources and update this page with more options.
- LawTrades: We’ve partnered with LawTrades to give you free access to their PPP loan eligibility calculator as well as receive a $50 discount on optional loan application support (use code: “IND”). Confirm your eligible loan amount.
- Kabbage: We’ve partnered with Kabbage to help you access critical funds through the Paycheck Protection Program. Disclosure: Industrious may receive a fee for your referral (100% will be donated to relief efforts). Apply Now.