What you need to know
What is the Paycheck Protection Program (PPP)?
This is a new program offering loans up to $10 million at a 1% interest rate, calculated based on 2.5x your average monthly payroll costs. As long as you use the proceeds of the loan under the rules, these loans are 100% forgiven by the government.
What are “payroll costs”?
- Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee)
- Employee benefits including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit
- State and local taxes assessed on compensation
- For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee
What are the rules to get the loan forgiven?
The SBA will forgive 100% of the loan as long as you use 75% of the money for payroll costs within 8 weeks after you receive it.
Small businesses with fewer than 500 employees (subject to certain limited exceptions); independent contractors; and sole proprietors in business on February 15, 2020 can all qualify. Additionally, the following groups can qualify:
- A business that operates an accommodation or food service business (NAICS Code 72) with 500 of fewer employees per location
- A business assigned a franchise operator code by SBA
- A business that receives assistance under the Small Business Investment Act
How much can I get?
Assuming you qualify, you calculate the max loan value by:
- Aggregating all annual payroll costs of US-based employees and subtract compensation over $100,000 paid to employees or independent contractors.
- Calculating the average monthly payroll costs (take total annual payroll and divide by 12)
- Multiplying the average payroll costs by 2.5
- Subtracting any Economic Injury Disaster Loan (EIDL) amount for which you’ve already received an advance from January 31 2020- April 3, 2020
You must fill out our online PPP application form by clicking the button below
Please also have available any of the following documents:
- 940 Form (2019)
- 944 Form (2019)
- 941 Form (up to all four quarters of 2019)
- 1040 Schedule C (2019)
- ADP Cares Act Payroll Form
Please keep in mind that with First Union:
- There are no application, registration or closing fees. No fees whatsoever
- The interest rate on PPP Loans is 1% annually
- The term on PPP Loans is 2 years
- 6 months of deferred payments with the PPP Loan
- Borrowers may receive loan forgiveness
For the most up-to-date official details on the PPP Loan click here to download the PDF.
For more detailed information on the PPP loans, please download the US CHAMBER OF COMMERCE pdf located here. Reserve your space in line now by clicking the orange APPLY HERE button and filling out the application before funding runs out again.
* The SBA (Small Business Administration), the government agency in charge of overseeing the PPP Loan and other disaster loan programs makes the final decision on the funding it approves through our platform. We will try to keep you updated, however, keep in mind that the SBA is inundated and we must rely on them for any updates first.
By submitting your application and required documentation now, you will be holding your place in line while Congress approves the additional funding being added to the program.