Get Help Fast When Your Business Needs Financial Assistance
If your small business needs financial assistance right now, don’t hesitate to apply for a ppp loan before the March 31, 2021 deadline. You may have already heard that the Small Business Adminstration (SBA) is reaching out to small business owners about the Paycheck Protection Program (PPP) resources due to the Covid-19 pandemic. First Draw PPP Loans are available for businesses that have not received a PPP loan. And, Second Draw PPP Loans are available for small businesses that have previously received a PPP loan. Certain businesses fall under this category and they are eligible to apply for a Second Draw PPP Loan.
According to the New York Times, on February 22, 2021, President Joe Biden and his administration abruptly changed crucial program rules to help the neediest small businesses. Which have sometimes struggled to obtain aid from the federal relief effort. What this means to many of you is this… The recent changes include a new way to calculate loans for self-employed people and a 14-day exclusive window for applications from small businesses with fewer than 20 employees. The adjustments are intended to increase aid to the very smallest businesses, many of which are run by women, Black people and members of other minority groups and have so far received a disproportionally small share of the relief money.
Many of these small business owners are desperately searching for lenders that can help them by offering a PPP loan in only a few short weeks. I’ve discovered that Kabbage.com has specifically tailored their website to accept applications from small business owners seeking to receive PPP loans. When you apply for a PPP loan, the application is easy to access, and simple to fill out. The first thing that you will need to do is find out if your small business qualifies for a PPP loan. The lender’s user friendly website will guide you on all of the neccessary steps and information they will need to quickly process your PPP loan application. You will be able to conveniently upload all of your required documents on their secure database without any hassles.
But before you apply for a PPP loan, gather up all of your business-related expenditures and tally them up. You will also need to provide a copy of your Schedule C Profit and Loss Tax Form showing your business-related expenses and loses. Kabbage will ask you to provide several bank statements relating to your business expenditures as well too. Once you have uploaded all of your required documents to Kabbage and answered a few questions, they will contact the SBA to let them know you have requested a PPP loan through their company. SBA will look over your loan application and documents to determine if your information is error-free. Then, you will be notified by Kabbage if your PPP loan was either approved or denied.
Updated Information About the Covid-19 Economic Injury Disaster Loans (EIDL)
I also want to talk about how small businesses can apply for the Targeted EIDL Grant. As of this writing, the SBA has begun sending out invitations to small businesses to apply for the targeted cash advance. However, there has been a significant number of inquiries concerning how to provide the necessary information for this application. Well, let me further explain that during the month of December 2020, lawmakers agreed to pass the Cares Act, $600 billion dollar stimulus package. Recently, more funding was set aside for the EIDL grant program, and the SBA is now starting to give out $10,000 to eligible businesses in the form of a targeted cash advance.
Please note, the targeted cash advance is invitation only. The SBA is currently attempting to contact past candidates of the EIDL program. SBA is pooling together all of the candidates that could qualify for this targeted cash advance. They are sending out emails requesting that candidates apply in the event that they might want to possibly get the full $10,000 dollar loan. If you do receive an email from SBA about the EIDL targeted cash advance application and you’re an independent contractor, gig worker or freelancer, be prepared to submit your social security number or pin to them.
However, if you are a candidate that applied under an LLC, you will need to provide your company’s Employer ID number (EIN). It’s also important that your bank account information matches the business name that you submitted to SBA for the EIDL grant funds that you received. Independent contractors, gig workers or freelancers that applied for the EIDL grant under their personal checking accounts most likely won’t encounter any problems when SBA sends them their targeted cash advance funds.
You will need to answer about 20 questions. These are simply eligibiity questions. You’ll simply need to answer Yes and No to these inquiries. Once you do that, the SBA will then ask you to certify that your information is true. After you click on the Submit button, that’s pretty much it. Their is a waiting period and contingent upon your responses to SBA’s inquiries, will determine whether you’re eligible for the targeted cash advance funds. I also learned that First, Targeted EIDL Grant emails continue to be distributed.
I subscribe to HelloSkip.com and based on his company’s data, only 15% of EIDL tracking users have received an invitation and more invites are expected in the next coming weeks. If you are invited to apply for the Targeted EIDL Grant, here’s what the application looks like. Once a PPP loan application is approved by the SBA, by law you are supposed to receive the disbursement from your lender within 10 calendar days.
Since businesses across the country have been scrambling to apply for the latest round of funding, it isn’t always completely clear how quickly the complete approval process takes place. Mainly because every lender may have slightly different processes. However, you should submit your PPP loan application as quickly as possible in order to ensure you receive your cash advance funds in a timely manner.
Additionally, small businesses could receive more funding if they submit an application to the PPP loan forgiveness program. According to Kabbage, if your employees and payroll have remained consistent with pre-COVID levels, you may be eligible to have up to 100% of your loan forgiven. The PPP loan forgiveness program is similar to a grant that you don’t have to repay. The SBA will forgive a portion of the loan used for payroll, rent, mortgage interest or utility payments for up to 24 weeks after the loan is issued.
Any amount that is not forgiven will be treated as a two-year loan with a 1% fixed interest rate. All payments (principal, interest and fees) are deferred until you receive a decision on your loan forgiveness application. However, interest will continue to accrue over this period.