[SPECIAL UPDATE” To submit an application today, for processing ASAP, please visit my website here: http://snyderbusinesslaw.com/sba-loan/. I am working closely with 11 Capital to prepare loan application packages for immediate approval. ]
The Small Business Administration (SBA) SBA is currently responsible for two relief loans, the SBA (7a) Payroll Protection Program (or “PPP”), and the Economic Injury Disaster Loans (EIDL). The EIDL loans are funded through FEMA, and as such they mimic the level of effort and timeline of their personal disaster recovery loans. There are not forgivable and are not funded through banks and lenders. [For more information on EIDL Loans, visit here: https://covid19relief.sba.gov/#/ ]. I am recommending that all my clients apply for both loans.
The PPP loan is funded by SBA-approved banks and lenders, and insured by the SBA. The PPP loan’s goal is to keep people employed by giving forgivable loans to employers. This program will be followed by other (not yet clarified) SBA programs to loan larger amounts of money for debt relief, operating expenses, and real estate.
Applications for funding through the PPP loan will be accepted by banks and lenders as soon as Friday, April 3, 2020. Only applications from businesses are accepted now; applications from sole proprietors and independent contractors will be accepted beginning next Friday, April 10, 2020. Businesses may borrow the monthly average of their payroll costs (including employer-paid taxes, group health insurance, retirement funding paid by the employer, and 1099 contractors who contribute as would a W-2) times 2.5.
The loan is at 4% with a 10 year term, the first 6-12 months of payments will be deferred. If the funds are used for payroll, they will be forgiven. There are more specifics on the forgiveness which will be outlined later.
To begin the process, please visit my website here: http://snyderbusinesslaw.com/sba-loan/to complete the intake form. I am working closely with 11 Capital to prepare loan application packages for immediate approval. [Please share this link with any business owners you know.]
We will then get you a checklist regarding documentation needed to apply for the PPP, and you will be assigned a loan processing agent.
If you need help, you can schedule a complimentary call here: https://calendly.com/jpeyton/sba-loan.
Janelle Snyder Peyton is the CEO and Managing Partner of Snyder Law, an award-winning boutique law firm providing the highest quality general counsel and intellectual property legal services to companies at predictable and reasonable rates via a service called Scribe®. The firm offers brand building strategies through corporate and intellectual property law, including business entity formation, contract drafting and review, joint venture agreements, trademark and copyright protection, and licensing & franchising.