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.
The PPP is a loan provided by the government for the purpose of helping the employers to continue paying their employees. This loan is provided for businesses of all sizes without discrimination. 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.
If you think that your business is eligible for the PPP loan after meeting all the employees’ requirements, you should then proceed to finding a bank that will help you process the SBA loan. You can easily find such a bank by using your zip code. There’s no need to panic as the entire process of applying for the loan is easy. Since the application form only contains two pages it is possible for you to save on a lot of time. The first part pf the form may require you to fill in your contact information. So that the loan company can easily find you, they will require you to include your phone number and email address.
The form will also ask you to fill in your company’s tax identification number and at the same time, identify your business type. The average amount of money paid to the employees each month is also indicated in the application. You will then be required to multiply this by 2.5. The reason for loan application is also required in the application.
You will then be asked to answer eight questions. The application also asks if you have ever been in the wrong with the arm of the government. Finally, you will have to provide with a list of certifications and authorizations with your initials present.