Are you a trader or a small business owner or even a company CEO and you are interested in a loan to support your business? Then PPP loan is the right one for you. PPP loans are issued by private lenders and credit unions and they are supported by the small business administration. The main reason for the PPP loans is to incentivize businesses to keep workers on the payroll and to re-hire workers that lost wages and salaries due to the pandemic. This loan can be used for different purposes; rent, utilities, mortgage interest, payroll. This platform lends you money as a small business owner or even as a worker and you have to pay in 5 years’ time.
You can make use of these PPP funds or loans to pay yourself through what is known as owner compensation share. This is to compensate you for the loss of business income. As it was stated earlier the loans is mainly for payroll. So once you collect the loan you can spend it on payroll (for yourself or employees) and the business portion of mortgage loan interest, food, and transportation. In addition to the above, a borrower can receive forgiveness for their loan even if they have laid off employees since receiving their PPP loans.
Furthermore, if you have received a PPP loan before. You may be eligible to ask or apply for a second PPP. That is if your business suffered a loss in the previous year. Then that means the first loan can be forgivable if follow the forgiveness guidelines.
Do I Qualify for the PPA Loans?
Do you want to collect the PPA loan for your business or company? And you want to know the requirements for the loan. The below are the requirements for the first and second PPA loans.
First PPP Loan;
- Your business must be operating before February 12 2021
- Your business is still open and functioning
- You do not have more than 500 employees
- If your business has different locations and branch and you do not have more than 500 employees per branch.
- You have to show 25% or more than reduction in gross revenue.
Second Draw PPP Loans
- You must have used your first PPP loan
- Your business was operating before February 15, 2020
- The business is still functioning
- You have not more than 300 employees
- In your different business location you have not more than 300 employees
- You can show a 25% or greater reduction gross revenue.
If you follow the above statements, then you are qualified to apply for the PPP loan. The loan has a period when it is available. So always check on your private lenders or banks, because it is for the covid 19 pandemic.
How To Apply For PPP Loan
To apply for the PPP loans, business owners need to fill out the loan application SBA Form 2483 for the first draw loans and for the second draw loans SBA Form 2483-SD. You can apply for the loan through a participating lender. However, you need to know that some banks prioritize current holders. So if you have any relationship with the bank offering the PPP loan, then you can apply there. Some companies and online lenders like BlueVine are allowed to collect or accept loan applications. The companies offer a loan application procedure. And it may be able to approve loans and give cash faster than other banks.
Apply for the PPP loans when it is available, to support your business and your employees for the payroll. The loan also helps to pay for many other important things.