If your small business has been hurt by COVID-19, you can get help from the SBA Paycheck Protection Program. Sign up for NorthOne and we can help you get your PPP loan. Your business could get up to 2.5X the value of your average monthly payroll. Apply quickly – the deadline is August 8th.
If you’re an American small business owner, chances are you’re aware of the SBA Paycheck Protection Program. Even if you missed the heavy coverage by the mainstream media, you’ve probably seen some heated discussions on social platforms or discussed it with fellow business owners online or in person. However, information about the SBA PPP has been confusing and hard to keep up with. In this article, we want to break down some of the most frequently asked questions and give you everything you need to know to successfully apply for a loan. Strap in! Here are the answers to every burning question you have about the Paycheck Protection Program.
What is the Paycheck Protection Program?
The Paycheck Protection Program, also known as PPP, was launched in March as the centerpiece to the federal government’s CARES Act. The purpose of the PPP is to provide financial assistance to businesses that have been negatively impacted by the Coronavirus pandemic in the form of a 100% forgivable loan. So far, $800-billion has been allocated to the program. A large chunk of this money has already been distributed, but if you haven’t applied yet, there is still time!
NorthOne has made it quick and easy to apply for the PPP. We’ve partnered with Cross River Bank whose handling of the Paycheck Protection Program earned them a feature in The New York Times. We encourage any small business that has struggled as a result of the Coronavirus crisis to apply.
What’s the easiest way to get a Paycheck Protection Program loan?
Applying for the SBA PPP loan on the official government website is a long and tedious process that includes filling out a lot of paperwork. At NorthOne, we know business owners don’t have time for hours of paperwork, especially during a pandemic. That’s why we’ve created an easier way to apply for the PPP. Sign up to NorthOne in 3 minutes, and we’ll help get the relief funds you need to get your business through this difficult time.
Who is eligible for the Paycheck Protection Program?
Any American small business with fewer than 500 employees, that can prove their business has been affected by COVID-19 should be eligible for the PPP.
- S Corporations
- C Corporations
- Private nonprofits
- Independent contractors
- Sole proprietors
You will need to prove that your business existed before February 15th of this year.
Is a Paycheck Protection Program loan really 100% forgivable?
A lot of business owners have expressed concern about applying for the Paycheck Protection Program for fear they may end up in more debt then they started with. But as long as you follow the SBA guidelines for using the PPP loan, it is 100% forgivable. The main thing to remember if you want your PPP loan forgiven is that at least 75% of the funds should go towards payroll expenses. This includes benefits like sick leave, parental leave, and vacation pay.
To receive forgiveness for the PPP loan you will also have to prove you maintained your staff headcount. Remember that the purpose of this loan is to prevent mass unemployment. If you receive a PPP loan but then lay off your staff, it defeats the purpose of the loan. We understand that times are tough but cutting payroll should be a last resort if you want your loan forgiven.
To make sure our customers have all the information they need, we’ve put together this resource that outlines the guidelines you should follow if you want forgiveness for your PPP loan.
Is it hard to get a Paycheck Protection Program loan?
Applying for a PPP loan doesn’t have to be difficult. To date, NorthOne customers have received over $12 million in SBA PPP loans. To get your PPP loan, simply signup to NorthOne in 3 minutes and request to apply. We’ll send you an application form and get in contact when it’s been approved. You will have to include some information about your business in the application, we’ve outlined the specifics on our SBA page to give you a head start.
I was rejected by another bank, can I still apply for the Paycheck Protection Program?
We’ve heard from a lot of business owners who were told by their banks that they could not apply for the loan despite fitting the prerequisites outlined by the SBA. After the first round of funding, some big banks were accused of prioritizing bigger, more profitable businesses when distributing PPP loans.
This explains why businesses like Shake Shack and Ruth’s Steakhouse ended up with multimillion-dollar loans while so many small businesses missed out. At NorthOne our mission is to help ALL business owners, so if you weren’t able to secure a loan through your regular bank, don’t lose hope. Sign up to NorthOne and we’ll help you quickly and easily apply for a PPP loan.
How long will it take to get the Paycheck Protection Program funds?
The SBA has never had to process this many loan applications and as a result, we are seeing some people having their applications approved in a matter of hours while others are taking weeks. In some cases, the SBA might ask you to provide some more information about your identity or business which can further slow down the process.
The average waiting time for approval is 10 days. Once your application has been approved by the SBA, we’ll transfer the funds to your NorthOne account in a matter of days not weeks.
How long do I have to apply for the PPP loan?
This round of SBA PPP funding will run out on August 8th. Apply for the Paycheck Protection Program now.