COVID-19 Loan Information

COVID-19 Loan Information

On March 27th, 2020, the House of Representatives voted and passed the CARES act. That same day, President Donald Trump signed the bill into law. The CARES Act will provide $350 Billion to small businesses, allowing employees to keep their jobs during the COVID-19 pandemic. Coined the Paycheck Protection Program, this initiative gives 100% federally-granted funding to small businesses.

The administration has not yet released full details on the loan program. However, we have compiled a list of information to help small business owners prepare to file for the loan.


Small business owners are eligible if they are:

  • A small business with fewer than 500 employees
  • A small business that otherwise meets the SBA's size standard
  • A 501(c/)(3/) with fewer than 500 employees
  • An individual who operates as a sole proprietor
  • An individual who works as an independent contractor
  • An individual who is self-employed and regularly carries on any trade or business
  • A tribal business concern that meets the SBA size standard
  • A 501(c/)(19/) Veterans Organization that meets the SBA size standard

Here are some additional rules that might make a small business eligible:

  • If you are in the accommodation and food services sector (NAICS 72/), the 500-employee rule is applied on a per physical location basis
  • If you are operating as a franchise or receive financial assistance from an approved small business investment company, the standard affiliation rules do not apply

Note: The 500 employee rule applies to all employees, including full-time and part-time employees.

What lenders will look for

While assessing the eligibility of small businesses, lenders will need to determine if the borrower was in operation and had employees before February 15th, 2020.

How much can businesses borrow

The PPP Loans will provide up to 2.5X the average total monthly payroll costs in 2019. Any companies that were not operational until 2020, loans will provide up to 2.5X the average total payroll costs in January and February 2020.

Sole Proprietors, independent contractors, and the self-employed will be able to collect the sum of any income that is a wage, commission, income, or net income, not exceeding $100,000 in a year.

Loan forgiveness

Loan forgiveness will be equal to the amount a borrower spent on payroll, interest on mortgages, rent, and utilities. However, the amount of forgiveness will reduce if the borrower realizes a reduction in wages exceeding 25%. If businesses use any of the loan amounts for unrelated expenses, the loan will not fall under forgiveness rules and will need to be paid back, with interest.

Many businesses are shuttering right now. If you're interested in receiving more information regarding eligibility, or if you would like to start the process, now is the time to strike! There is a finite amount of funding available or expire on June 30th, 2020 - Whichever comes first. First Union Lending is here for you! Please visit our COVID-19 emergency loan page for more information and schedule a call with one of our specialists. Relief is here, but you have to act fast!

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First Union Lending LLC is a dually licensed Lender/Broker with its main offices located at 4900 Millenia Blvd First Floor Orlando, FL 32839. First Union Lending LLC and its ads are meant for continental United States, including Alaska and Hawaii small business owners. Business Loans offered by First Union Lending LLC have varying rates and terms that can range from 30 - 120 payments and all rates and terms are based on eligibility of the business and its owners. The actual terms are based on credit, business history, industry, amount and terms. As an example, a $5,000 loan paid over 5 years at 8% would have a total repayment of $6,082.92 over the life of the loan. We use the latest encryption to protect sensitive information transmitted online, as well as run our own secure server network to ensure your information is protected offline as well. California loans made pursuant to the California Financing Law, Division 9 (commencing with Section 22000) of the Finance Code. All such loans made through VBJ Consulting, LLC, a licensed finance lender/broker, California Financing Law License No. CFL#60DBO78163

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