What You Should Know About This Year
The Process to Applying 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 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. The loan is, however, only provided for businesses that have applied for it. This document guides you on how to apply for the PPP loan.
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. Your business is however expected to ensure that all the employee requirements have been met. Since most of the businesses were abruptly closed without their consent, it is fair that they be compensated for their loses. 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. Your zip code can help you achieve this. There’s no need to panic as the entire process of applying for the loan is easy. The fact that the document only contains two pages serves to save you on time. You will be required to fill in your information in the first page, including the name of your business and its geographical location. 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 business tax identification number should also be included in the application. 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. The document will also ask you to indicate the reason why you are applying for the loan.
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. Finally, you will have to provide with a list of certifications and authorizations with your initials present.