Everything You Should Know About a PPP Loan
Most businesses have recorded tremendous loses as a result of the covid-19 pandemic. Since the disease is transmitted from one person to another through the air and body fluids, the government ordered many businesses to close to curb the spread of the disease from one person to another. Lack of customers is something that has contributed to lack of revenue which has translated to closure of businesses. However, there is something to smile about, taking that the government has authorized the release of the Paycheck Protection Programs which is means to benefit both employers and employees. Nevertheless, only the businesses that have applied for this loan are the ones that get to secure it. Reading this article gives you the ability to learn how you can apply.
The importance of the PPP loan is that it allows the business owners to keep their workers on a payroll. The main difference that exists between the PPP and the rest forms of loans is the fact that every business size is eligible for it, or in other words, businesses are eligible for forgiveness. However, only the business that are able to meet employee requirements is the only one eligible for the loan. PPP loan is very necessary taking that no business closed its activities willingly. Everybody knows that crowded businesses were closed as a way of keeping citizens safe from the deadly disease.
Finding a bank that can process an SBA loan is the next thing you do after you are sure that you are eligible for the PPP loan. You can easily find such a bank by using your zip code. However, you should not be worried as nothing is hard when it comes to filling the PPP application. Since the application form only contains two pages it is possible for you to save on a lot of time. You will be required to fill in your information in the first page, including the name of your business and its geographical location. You will also be required to give some additional information such as your phone number so that the bank can know how to reach you.
You will also be required to include your business tax identification number. In the form, you will also have to indicate the number of employees that work for your company and your average monthly payroll. You will then be required to multiply this by 2.5. You will then have to indicate the reason why you are applying for the loan to verify if the loan is used for the payment of mortgage or for payroll.
You will then be required to answer a number of questions which are eight in number. The aim of the questions is to ensure that the funds are not provided for a person who does not deserve to get the money. In the application, you will also be required to show a list of certifications and important documents.