SBA Paycheck Protection Program

SBA Paycheck Protection Program

SBA Paycheck Protection Program is designed to provide a direct incentive for small businesses that are adversely impacted by COVID-19 crisis to keep their workers employed. Total of $357 billion dollars will be funded to small businesses around the nation to help them retain employees and cover a part of their operating expenses.

The SBA relief loan program will only be available for a limited time, in accordance with the Coronavirus Aid, Relief, and Economic Securities (CARES) Act. To help businesses survive during these trying times the Capital Rams have started accepting applications through a streamlined process to help your business get funded through one of our 8 SBA preferred lenders.

Key Features:

  • 1% Interest Rate
  • 2 Year Term
  • All Fees Waived
  • No Payments For 6 Months
  • No Pre-Payment Penalty
  • Loan Can Be Fully Forgiven

SBA Paycheck Protection Plan (PPP) FAQs

All businesses – including nonprofits, veterans organizations, Tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors – with 500 or fewer employees can apply. Businesses in certain industries can have more than 500 employees if they meet applicable SBA employee-based size standards for those industries.

  • Starting April 3 2020 – Small Businesses and Sole Proprietorships
  • Starting April 10 2020 – Independent Contractors and Self-Employed individuals.

**Although the program is open until June 30, 2020, you should apply as quickly as you can due to the funding cap ($349 Billion).

You can apply through us for FREE by submitting a quick loan request – Apply Now

Benefits of applying through us:

  • Partners and authorized agents of 8 SBA certified and preferred lenders (SBA PLPs). This gives us dedicated support and priority for processing these loans.
  • Simple Streamlined SBA PPP Application Process-
    • Fill out a quick request form to get in our queue
    • Upload your documents to our secured portal or email us
    • Get regular updates until you get funded
  • You will have our support for any questions 7 days a week.
  • Completed SBA Paycheck Protection Program Application Form (SBA Form 2483)
  • All owners’ Driver’s Licenses (front and back)
  • IRS Form 940 and 941 (as of 12/31/19 and 3/31/20, respectively)
  • Payroll Report for February 15, 2020 (or closest date)
  • Annual Payroll Report for 2019 (calendar year through December 31, 2019)
  • If an SBA EIDL loan was made between 1/31/2020 and 4/3/2020, a copy of the note
  • Additional documents might be required based on your individual scenario
  • For businesses operating between February 15, 2019 and June 30, 2019, the average eligible monthly payroll costs incurred during the 1-year period before the date on which the loan is made multiplied by 2.5 (represents months) – plus – the balance of any SBA disaster loan closed between January 31, 2020 and when this loan will be made, if applicable – OR – $10 million whichever is less.
  • For a business not operating between February 15, 2019 and June 30, 2019, the average eligible monthly payroll costs incurred during the period between January 1, 2020 and February 29, 2020 multiplied by 2.5 (represents months) – plus – the balance of any SBA disaster loan closed between January 31, 2020 and when this loan will be made, if applicable – OR – $10 million whichever is less.
  • In the case of an eligible seasonal employer, the average number of full-time employees per month employed during the period beginning on February 15, 2019 and ending on June 30, 2019. The average eligible monthly payroll cost* multiplied by 2.5 (represents months) – plus – the balance of any SBA disaster loan closed between January 31, 2020 and when this loan will be made, if applicable – OR – $10 million whichever is less

Payroll costs are defined as:

  • salaries/wages/commissions, or cash tips (capped at $100,000 on an annualized basis for each employee)
  • employee benefits including costs for vacation, parental, family, medical, or sick leave; allowance for dismissal or separation; payments required for the provision of group health care benefits including insurance premiums; and payment of any retirement benefits
  • state/local taxes assessed on compensation of employees, and
  • for a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee.

Example: Some employees make more than $100,000, outstanding EIDL loan of $100,000

  • Annual payroll: $1,500,000
  • Subtract compensation amounts in excess of an annual salary of $100,000: $1,200,000
  • Average monthly qualifying payroll: $100,000
  • Multiply by 2.5 = $250,000
  • Add EIDL loan of $100,000 = $360,000
  • Subtract $10,000 received as EIDL Grant “advance”
  • Maximum loan amount is $250,000

The act expressly excludes the following:

  • Any compensation of an employee whose principal place of residence is outside of the United States;
  • The compensation in excess of an annual salary of $100,000. For example if an employee makes $125,000/year then $25,000 is excluded
  • Federal employment taxes imposed or withheld between February 15, 2020 and June 30, 2020, including the employee’s and employer’s share of FICA (Federal Insurance Contributions Act), Railroad Retirement Act taxes and income taxes required to be withheld from employees; and
  • Qualified sick and family leave wages for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act (Public Law 116–127).

No. Independent contractors have the ability and must apply for a PPP loan on their own.

  • Eligible payroll costs, including benefits
  • Interest on mortgage obligations that were in place as of February 15, 2020 (excludes any prepayment of or payment of principal)
  • Rent under lease agreements in force before February 15, 2020; and
  • Utilities, for which service began before February 15, 2020.

If you use PPP funds for unauthorized purposes, SBA will direct you to repay those amounts and the loan will not be forgiven. If you knowingly use the funds for unauthorized purposes, you will be subject to additional liability, such as charges for fraud.

Yes. However, Keep the following in mind:

You will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utilities payments over the 8 weeks after getting the loan. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.

You will also owe money if you do not maintain your staff and payroll.

  • Number of Staff: Your loan forgiveness will be reduced if you decrease your full-time employee headcount.
  • Level of Payroll: Your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019.
  • Re-Hiring: You have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.
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