Everything You Should Know About a PPP Loan
The covid-19 pandemic has affected many businesses negatively. This explains why most of the business have been closing their doors at the request of the government of the United States. Lack of revenue is one of the factors that have also contributed to the closure of most businesses countrywide. Nevertheless, the government knows that many businesses have been affected, and it came up with the PPP loan which is aimed at helping both the business owners and business workers. However, in order for you to get the PPP, you are required to apply for it. Below is the route that you should follow while applying for the loan.
With the PPP loan, it is possible for employers to keep their employees 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. Your business is however expected to ensure that all the employee requirements have been met. Therefore, PPP loans are applied for the purpose of compensating businesses taking that they were closed abruptly. Business were closed for the purpose of keeping the public safe from the corona virus pandemic.
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. Furthermore, the application form has only two pages. The first part pf the form may require you to fill in your contact information. Furthermore, you will also be required to include your phone number and email address so that the loan company will know how to find you.
The form will also ask you to fill in your company’s tax identification number and at the same time, identify your business type. In the form, you will also have to indicate the number of employees that work for your company and your average monthly payroll. The amount that is obtained in the process is the loan amount request that you will make. 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 application also asks if you have ever been in the wrong with the arm of the government. A list of certifications is also required in the document.