Opening 1:
Hey there, fellow small business owners! I know that many of us have been struggling to stay afloat during these uncertain times. That’s why I wanted to share some good news with you all – there are still banks out there accepting PPP applications! So, if you haven’t already applied for this program, now is the time to do it. I know that the application process can be confusing and frustrating, but don’t let that deter you from getting the financial assistance that you need. Keep reading to find out which banks are currently accepting PPP applications.
Opening 2:
For many small business owners, the Paycheck Protection Program (PPP) has been a lifeline during the COVID-19 pandemic. However, the initial funds were quickly exhausted, leaving many business owners in a precarious position. The good news is that Congress has approved additional funding for the program, and there are still banks accepting PPP applications. It’s not too late to apply for assistance and get the help that you need to keep your business afloat. Keep reading to find out which banks are currently accepting applications and how you can get started.
Opening 3:
Have you been struggling to make ends meet as a small business owner during the COVID-19 pandemic? It’s not an easy time for anyone, but there is help available. The Paycheck Protection Program (PPP) is designed to provide financial assistance to businesses impacted by the pandemic, and there are still banks accepting applications. If you haven’t applied for the program yet, now is the time to do so. Don’t let the process intimidate you – we’ve got all the details you need to get started and find a bank that is currently accepting PPP applications.
PPP Application Requirements
If you’re a small business owner looking to take advantage of the Paycheck Protection Program (PPP), you’re probably wondering where to start. The first step is to find a bank that is accepting PPP applications. Here’s a breakdown of what most banks are looking for in PPP applicants:
Documentary Requirements
- Proof of payroll costs, such as payroll tax filings, Form 1099-MISC, and income and expenses from a sole proprietorship.
- Documentation showing the number of full-time equivalent employees on payroll and their pay rates, such as payroll reports, employee earnings statements, and payroll tax filings.
- If you are an independent contractor, sole proprietor, or self-employed individual, you will need to provide documentation showing your 2019 net profit, such as a 2019 Form 1040 Schedule C.
- Documentation showing any retirement and health insurance contributions, such as cancelled checks, payment receipts, or account statements.
Credit Requirements
Most banks are not requiring a minimum credit score for PPP applicants. However, if you have a history of delinquent payments or bankruptcies, your application may be denied. Additionally, some banks may require you to have an existing relationship with them, such as a checking or savings account.
Loan Amounts and Interest Rates
The loan amount you can receive with a PPP loan is calculated based on your business’s payroll expenses. Generally, you can receive a loan amount of up to two and a half times your monthly payroll expenses (capped at $10 million). The interest rate for PPP loans is 1%, and the term is two years. Additionally, the loan is forgivable if you adhere to the SBA’s rules on how the loan funds can be used.
Banks Accepting PPP Applications
| Bank Name | PPP Application Status |
|---|---|
| Bank of America | Accepting PPP applications |
| Wells Fargo | Stopped accepting PPP applications due to reaching lending capacity |
| JPMorgan Chase | Accepting PPP applications |
| Citizens Bank | Accepting PPP applications |
| PNC Bank | Accepting PPP applications |
It’s important to note that some banks may only be accepting PPP applications from existing customers, so be sure to check with your preferred bank to see if they are accepting applications.
PPP Application Deadlines
The Paycheck Protection Program (PPP) was created as part of the CARES Act to help small businesses affected by the COVID-19 pandemic stay afloat by providing loans to cover payroll and other expenses. PPP loans are issued by banks and other financial institutions, and there are several important deadlines that applicants should be aware of.
- The initial deadline to apply for PPP loans was June 30, 2020. However, due to the continued impact of the pandemic on small businesses, the program was extended through August 8, 2020.
- After this deadline, the Small Business Administration (SBA) stopped accepting PPP loan applications from lenders.
- However, in December 2020, Congress approved additional funding for PPP loans and extended the deadline for applications to March 31, 2021.
It’s worth noting that while the SBA stopped accepting PPP loan applications from lenders after the August 8, 2020 deadline, lenders were still able to process applications they had already received until August 31, 2020. So if you had already submitted an application by August 8th, your lender may have been able to continue processing it until the end of the month.
If you’re considering applying for a PPP loan, it’s important to act quickly to ensure that you meet the current application deadline. Keep in mind that the process can take time, so it’s best to get your application in as soon as possible to avoid missing out on this opportunity to get the financial support your business needs.
| PPP Loan Application Deadlines | Details |
|---|---|
| June 30, 2020 | Initial deadline to apply for PPP loans |
| August 8, 2020 | Extended deadline to apply for PPP loans |
| August 31, 2020 | Deadline for lenders to process applications received by August 8th |
| March 31, 2021 | Current deadline to apply for PPP loans |
While the future of the PPP program beyond March 31, 2021 is uncertain, it’s important for small business owners to stay informed about any new developments and deadlines. Keep an eye on the news and updates from the SBA and your lender to ensure that you’re taking advantage of all the resources available to help your business survive and thrive.
PPP Loan Forgiveness Criteria
Many small businesses across the United States applied and received funds through the Paycheck Protection Program (PPP) to help them stay afloat during the COVID-19 pandemic. However, PPP loans are subject to forgiveness, but only if businesses meet certain criteria.
- Amount of Funds Used for Payroll: To qualify for loan forgiveness, at least 60% of the PPP loan funds must be used to cover payroll expenses. This includes employee salaries, wages, tips, benefits, and state and local payroll taxes.
- Use of Funds: The remaining 40% of the loan funds can be used for certain non-payroll expenses, including mortgage interest, rent, and utility payments. However, the funds must be used within 24 weeks of receiving the loan.
- Staffing and Salary Levels: To avoid a reduction in forgiveness, businesses must maintain their staffing and salary levels. If they have fewer employees or lower salaries during the loan period than they did before the pandemic, the amount of loan forgiveness will be reduced proportionally.
Additionally, businesses may still receive partial loan forgiveness if they do not meet all of these criteria. For example, if a business uses less than 60% of the loan funds for payroll expenses, they may still be eligible for partial loan forgiveness.
To apply for loan forgiveness, businesses must submit a PPP loan forgiveness application to their lender. The application requires businesses to provide documentation to prove the amount of loan funds used for payroll and non-payroll expenses, as well as documentation showing their staffing and salary levels.
| PPP Loan Forgiveness Criteria | Percentage of Loan Funds |
|---|---|
| Amount of Funds Used for Payroll | 60% |
| Use of Funds | 40% |
| Staffing and Salary Levels | 100% |
Understanding the PPP loan forgiveness criteria is crucial for small businesses who are seeking to have their loan amounts forgiven. By meeting these requirements and submitting the appropriate documentation, businesses can help ensure they receive full or partial loan forgiveness and stay on a path towards financial recovery.
PPP Application Process
Applying for the Paycheck Protection Program (PPP) can be a daunting process, especially in the current economic climate. However, it is important for small business owners to understand the steps involved in order to maximize their chances of receiving relief. Here is a breakdown of the PPP application process:
Required Information
- Business legal name, address, and phone number
- Borrower Tax Identification Number or Social Security Number
- Business activity or NAICS code
- Payroll information for the last 12 months, including salaries, wages, commissions, tips, group healthcare benefits, retirement benefits, and state and local taxes on employee compensation
Application Steps
The PPP application consists of several steps:
- Find a lender: Check with your current bank or credit union to see if they are participating in the PPP program. You can also use the Small Business Administration’s lender locator tool.
- Download and fill out the application: The application can be found on the SBA website or on your lender’s website. Make sure to have all the required information ready.
- Submit the application: Submit the completed application to your lender along with any additional documentation requested.
- Receive funding: If approved, you will receive the loan amount via direct deposit or check within a few days to a few weeks.
- Use the funds: Use the loan funds for eligible expenses, such as payroll, rent, mortgage interest, and utilities. Keep track of all expenses and retain all documents for at least six years after the loan is forgiven or repaid in full.
Loan Forgiveness
The PPP loan may be fully forgiven if certain requirements are met, including using at least 60% of the funds for payroll expenses and maintaining employee headcount and salary levels. The forgiveness application can be submitted to your lender once all eligible expenses have been paid. Documentation will be required to support the forgiveness amount.
| Eligible Expenses | Forgiveness Period |
|---|---|
| Payroll costs | 8-24 weeks |
| Rent or lease payments | 8-24 weeks |
| Mortgage interest payments | 8-24 weeks |
| Utilities | 8-24 weeks |
Understanding the PPP application process is crucial for small business owners in need of financial relief. By following the steps and keeping track of all documentation, businesses can maximize their chances of receiving a forgivable loan and ultimately keeping their employees on payroll.
PPP Loan Interest Rates
One of the most important factors to consider when applying for a PPP loan is the interest rate. Interest rates on PPP loans are determined by certain factors such as the size and term of the loan, and are set by the Small Business Administration (SBA).
- For loans issued before June 5, 2020, the interest rate is fixed at 1%.
- For loans issued after June 5, 2020, the interest rate is fixed at 1% or the current LIBOR rate plus 3%, whichever is greater.
- The maximum loan amount for first-time borrowers is $10 million or 2.5 times the average monthly payroll costs, whichever is less. For second-time borrowers, the maximum loan amount is $2 million or 2.5 times the average monthly payroll costs, whichever is less.
It’s important to note that PPP loans are forgivable if the loan proceeds are used for eligible expenses such as payroll costs, rent, mortgage interest, utilities, and other business expenses. The loan forgiveness amount is dependent upon maintaining employee and salary levels.
Here’s a breakdown of the PPP loan interest rates based on the term of the loan:
| Loan Term | Interest Rate |
|---|---|
| 5 years (for loans made on or after June 5, 2020) | 1% or the current LIBOR rate plus 3%, whichever is greater |
| 2 years (for loans made before June 5, 2020) | 1% |
It’s important to shop around and compare PPP loan interest rates offered by different lenders before applying for a PPP loan. By doing so, you can find a loan with a competitive rate and terms that best suit your business needs.
PPP loan eligibility
PPP loans have been made available to help small businesses that have been impacted by the COVID-19 pandemic. To be eligible for a PPP loan, a business must meet certain criteria:
- The business must have been in operation on February 15, 2020
- The business must have fewer than 500 employees
- The business must have been impacted by the pandemic, either through a decrease in revenue or supply chain disruptions
- The business must be located in the United States or its territories
- The business must not be involved in certain illegal activities, such as gambling or lobbying
- The business must not be currently in bankruptcy
Each lender may also have their own eligibility requirements, so it is recommended to check with individual lenders to see if they have any additional requirements.
Required documents for a PPP loan application
In order to apply for a PPP loan, businesses must submit certain documents to the lender, including:
- Payroll Tax Filings: IRS Form 940 and 941
- Payroll Documentation: Payroll processor records, payroll tax filings, or Form 1099-MISC, if applicable
- Income and Expenses: Bank statements, financial statements, profit and loss statements, and tax returns
- Business Information: Legal name, address, and EIN (Employer Identification Number)
PPP loan forgiveness
If a business receives a PPP loan, they may be eligible for loan forgiveness if they use the funds for certain expenses, such as payroll, rent, and utilities. In order to have the loan forgiven, the business must provide documentation to the lender showing how the funds were used. The amount of loan forgiveness is reduced if the business reduces its workforce or salaries and wages during the covered period.
| PPP loan forgiveness requirements | Percent of loan that can be forgiven |
|---|---|
| At least 60% of funds used for payroll costs | 100% |
| 30-59% of funds used for payroll costs | Partial forgiveness |
| Less than 30% of funds used for payroll costs | No forgiveness |
It is important to note that businesses must apply for loan forgiveness through their lender, and that the forgiveness process can take up to several months.
PPP Loan Documentation Requirements
As businesses rush to apply for the PPP loan, it’s essential to have the right documentation ready. Here are the seven documents banks require:
- SBA Form 2483 or 2483-SD (PPP Application)
- Payroll expense verification (such as payroll processor records, payroll tax filings, or Form 1099-MISC)
- Profit and loss statement for 2019 or 2020 (whichever period was used to calculate the loan amount)
- Bank statement or financial institution account information to confirm the business was in operation before February 15, 2020
- Articles of incorporation/organization and/or bylaws
- Driver’s license or passport for each owner
- SBA Franchise Identifier Code (if applicable)
PPP Loan Forgiveness Documentation
To qualify for PPP loan forgiveness, the borrower must provide documentation that proves they used the funds for eligible expenses. Here are the documents required:
- Payroll documentation (payroll reports from the date of loan receipt and the following 24-week period and Form 941 or equivalent)
- Mortgage interest, lease, and utility payments documentation (canceled checks, payment receipts, and account statements)
- FTE employee documentation (FTE count and pay rate documentation before and after the loan period)
- Bonus or hazard pay documentation (payroll records or cancelled checks)
PPP Loan Application Timeline
It’s crucial to submit your PPP loan application as soon as possible since funds are limited. The SBA has set deadlines for banks to process loan applications. Here are the latest deadlines:
| PPP Application Deadline | Loan Disbursement Deadline |
|---|---|
| August 7, 2020 | August 28, 2020 |
Depending on the website of the PPP loan lender, the application process varies. Some book several calls to talk through each step of the process with an expert account manager. PPP loan application can be overwhelming; this is why banks have developed useful software to make the process more manageable. Pay attention to the changes made with bank operating hours and check-in lines. Understanding these details can make a difference between securing a PPP loan and getting left out.
What Banks are Taking PPP Applications?
1. What is PPP?
PPP stands for Paycheck Protection Program, which is a government loan program that helps small businesses affected by COVID-19 pandemic to cover payroll and other expenses.
2. Which banks are taking PPP applications?
Many banks are currently accepting PPP applications. Some of the largest participating banks include Bank of America, JPMorgan Chase, Wells Fargo, Capital One, and PNC Bank. However, it is recommended to check with your local community bank or credit union to see if they are participating as well.
3. Can I apply for PPP if I already received funding in the first round?
Yes, small businesses can apply for a second PPP loan if they meet certain eligibility criteria and have used up the first loan.
4. What are the eligibility criteria for a PPP loan?
The eligibility criteria for a PPP loan include being a small business with 500 or fewer employees, being in operation as of February 15, 2020, and being affected by COVID-19 pandemic.
5. How can I apply for PPP?
You can apply for PPP through a participating lender. You will need to fill out an application form and provide supporting documentation.
6. What is the deadline for PPP loan application?
The deadline for PPP loan application is currently March 31, 2021.
7. How long will it take to receive the PPP funds?
The time it takes to receive PPP funds can vary depending on the lender and the completeness of your application. However, typically it takes 5-10 business days.