Yet, in an ongoing effort to mitigate fraud, the SBA is issuing a significant number of validation requests (also known as error codes) on a high volume of loan applications. Begin the application below. In December 2020, the government passed a second round of the Paycheck Protection Program that includes another $284.5 billion for new loans, split between first time (first draw) and second time (second draw) loans. Learn about the Paycheck Protection Program, Thank You for subscribing to the newsletter, Coronavirus Aid, Relief, and Economic Security Act, Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, The Online Place Where CPA Firms Can Get Their Small Business Clients Access to Financing, Invoice, Bank Statement, or Other Records showing business was operating as of 2/15/2020, Annual Tax Return (for full-year declines), Bank Statements (for applicable quarters). The second draw program allows “smaller and harder-hit businesses” who have already used (or plan to use) the full amount of their first loan to apply for more additional PPP funds, up to $2 million. In December 2020, the government passed a second round of the Paycheck Protection Program that includes another $284.5 billion for new loans, split between first time (first draw) and second time (second draw) loans. Paycheck Protection Program (PPP) Government Funded Coronavirus relief for small businesses and independent contractors Provides loans which will be forgiven (need not be paid back) if funds used for eligible expenses. Here are all of the main things to know about applying for, using, and receiving forgiveness on these PPP loans. This $908 billion coronavirus pandemic relief package includes targeted economic injury disaster loans (EIDLs), increased loan eligibility, and $284 billion for another round of PPP loans. Your Application, Loan Forgiveness Eligibility Can Be Verified. All rights reserved, Invoice, Bank Statement, or Other Records showing business was operating as of 2/15/2020, Annual Tax Return (for full-year declines), Bank Statements (for applicable quarters). The United States Congress passed the 2020 CARES Act in March 2020 which made up to $659 billion in loans available to small businesses impacted by Coronavirus in the Paycheck Protection Program. Yet, in an ongoing effort to mitigate fraud, the SBA is issuing a significant number of validation requests (also known as error codes) on a high volume of loan applications. Due to the level of effort required to resolve these SBA validation requests, we are prioritizing loans that have already been submitted. PPP loans are issued at the sole discretion of the lender and the SBA in accordance with their respective rules and other federal guidelines. (NAICS Code 72) at 3.5 x average monthly payroll costs for second time borrowers Any business that averages less than 500 employees per physical location that has a NAICS code starting with 72 (accommodation and food services) The first major change in the program came on June 5 when the Paycheck Protection Program Flexibility Act of 2020 was signed into law. Know more about us here! Biz2Credit TV Commercial, 'Paycheck Protection Program Pre-Apply' You're invited to pre-apply for the second round of Paycheck Protection Program loans. Coming into the Treasury’s second round of paycheck protection program (PPP) funding, there are still tons of things that are unclear for small business owners. The program was designed to help certain small businesses, self-employed workers, sole proprietors, certain nonprofit organizations, and tribal businesses continue to pay their workers and their related bills while shut down due to local and state COVID-19 guidance. This is because PPP loans, unlike most business loans, can be fully forgivable. Due to the level of effort required to resolve these SBA validation requests, we are prioritizing loans that have already been submitted. PPP Application PPP Application The company says you may be eligible for up to $2 million through the government program. One of the signature programs introduced in the package was the Paycheck Protection Program (PPP), run by the U.S. Small Business Administration (SBA), which provides low-interest forgivable loans for small businesses to use on payroll and other business costs. Professional, Scientific, and Technical Services. Paycheck Protection Program Loan Processing for Banks Serve your borrowers without all the stress. One of the signature programs introduced in the package was the Paycheck Protection Program (PPP), run by the U.S. Small Business Administration (SBA), which provides low-interest forgivable loans for small businesses to use on payroll and other business costs. Borrowers should make sure that they are using their SBA loans for things that are covered or else it is not eligible for loan forgiveness. There are five steps in the application process for the Paycheck Protection Program: The previous PPP loan program deadline of August 8, 2020 has been extended to March 31, 2021. We're here to help you navigate the Paycheck Protection Program and get funding for your business. Companies are able to receive up to 2.5x their average monthly payroll amount (3.5x for restaurants and hotels taking a second draw loan). This is because the PPP loan amount is based on average monthly payroll costs multiplied by 2.5. Approved PPP loans are governed by definitive documentation of the lender, which incorporate PPP terms and conditions. Biz2Credit is helping business owners submit loan applications for the Paycheck Protection Program for first and second draw loans. The second Paycheck Protection Program (PPP2) has Applies to first and second draw options Restaurants, Hotels, etc. 1. The Paycheck Protection Program was established by Congress under the CARES Act to stabilize the economy by providing low interest financing … Please be patient - it may take at … Originally, funds were available for loans between February 15 and June 30; that was later extended. Loans under the Paycheck Protection Program have unique documentation requirements that business owners must meet. Information, Upload Required Biz2Credit Opens Applications For New Round of Paycheck Protection Program Loans Wallis Bank Provided $347.5 Million in PPP Loans to More Than 3,500 Small Businesses The program focused on businesses with less than 500 employees, however, larger corporations were able to take advantage of funding for a number of months. There may be changes to this loan forgiveness process when it comes to second-draw loans. These loans are meant for businesses trying to maintain payroll levels. PPP loans are issued at the sole discretion of the lender and the SBA in accordance with their respective rules and other federal guidelines. NEW YORK, May 04, 2020 (GLOBE NEWSWIRE) -- Biz2Credit, a leading digital platform and technology company that helps small businesses access capital, today announced that its … Until then, the new program is scheduled to start in the coming weeks with the SBA and Treasury authorizing funds and restarting the Paycheck Protection Program. For small business owners during the COVID-19 pandemic, PPP loans have been able to help their businesses stay afloat without any debt obligations. Your Application, Loan Forgiveness Eligibility Can Be Verified. When the coronavirus pandemic hit the United States in March 2020, the federal government worked to prepare a first of its kind relief package that would support people and businesses across the country. © Biz2Credit Inc 2020. ", The period begins with the loan’s origination and ends on a date chosen by the borrower either, Upload required documentation (payroll costs, proof of business…), The lender will verify your information and eligibility, The SBA will accept your application (if everything is in order). A month later, on April 24, $319 billion more funding was added for the program for a total of $669 billion for small businesses to use. … Partner with us to reach potential merchants using our patented technology on the Biz2Credit platform. Sole Proprietors (Individual) & Independent Contractors. We want to alert anyone submitting loan applications now to anticipate processing times of 12-14 business days from date of submission. We continue to make steady progress processing and funding PPP applications. save. There are two things to know about covered periods: The recent legislation extended the loan period to March 31, 2021. Companies are able to receive up to 2.5x their average monthly payroll amount (3.5x for restaurants and hotels taking a second draw loan). Email address. Disclaimer: Your Paycheck Protection Program (PPP) loan application is subject to our Business Finance Terms and Conditions. what’s next? Advertiser Biz2Credit Advertiser Profiles The PPP is part of the $2 … The SBA is issuing a significant number of validation requests (also known as error codes) on a high volume of loan applications. ”An eligible non-payroll cost must be paid during the Covered Period or incurred during the Covered Period and paid on or before the next regular billing date, even if the billing date is after the Covered Period.” Business software, cloud computing service, or other human resources and accounting needs that help the business function. Biz2X and Biz2Credit bring you the way PPP lending should be done, with two options that fit the way your institution wants to respond to these unique government lending programs. 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