Feb 24, 2021 • 12:00 AM
Effective 02/24/2021, the Biden-Harris administration implemented a 14-day window during which PPP loan applications for small businesses with fewer than 20 employees will be prioritized. Learn more about it here.
Jan 19, 2021 • 12:00 AM
Join us for a special live event on Tuesday, January 26th at 2pm EST! Lendio CEO Brock Blake will be talking about PPP loans and the state of American small business with Former SBA Acting Associate Administrator Bill Briggs. Watch the live stream here.
Jan 11, 2021 • 12:00 AM
The PPP program has returned and Lendio's application is live! You can start your PPP loan application through Lendio right now. Apply for PPP.
Jan 08, 2021 • 9:00 AM
The SBA just announced that the Paycheck Protection Program (PPP) will re-open the week of January 11 for new borrowers and existing PPP borrowers. Follow Lendio on Twitter for more updates.
Dec 29, 2020 • 12:00 AM
Lendio, the nation’s leading small business loan marketplace, announced it has opened its streamlined preliminary online application for small business owners to access the government funds set aside for additional Paycheck Protection Program (PPP) loans. The application will be updated once the SBA releases updated rules and regulations for PPP loans. Read more details here.
Low Interest Rate
1% fixed APR for the life of the loan
Payments deferred for 10 months
On all qualified business expenses
Lendio CEO Brock Blake recently spoke with Bill Briggs, former Acting Associate Administrator of the SBA, about PPP and how American small business is surviving the pandemic.
After several months of sleepless nights for many small business owners, more economic relief is on the way. Congress has allocated $285 billion for more Paycheck Protection Program (PPP) loans.
The PPP loan reboot includes provisions to help those that are struggling the most—even the smallest of small businesses. And there’s an added benefit: if you already received a PPP loan in 2020, you can qualify for a Second Draw on your PPP loan in 2021.
To qualify for a PPP loan, your business needs to meet the following criteria:
And certify that:
This time around, the SBA has increased eligibility for PPP loans. Some business types that were excluded from previous rounds of PPP are now eligible to receive funding. These include:
There’s also a provision that may provide more relief for struggling restaurants: If you’re an accommodation or food service business that falls under a NAICS starting with “72” and has 500 or fewer employees per physical location, each location can apply for a PPP loan.
If the funds from your initial PPP loan weren’t enough to help you overcome the challenges brought on by the COVID-19 pandemic, you may be able to get a Second Draw.
Here’s the criteria you need to meet to qualify for a Second Draw:
If you own a restaurant, hotel, or live venue that falls under a NAICS code starting with “72,” you can apply for 3.5 times your monthly payroll costs for your Second Draw.
$2 million is the maximum amount you can receive for a Second Draw. Also, the aggregate total amount any borrower can receive from a First Draw and Second Draw PPP loan is $10 million. The aggregate total amount that businesses within a corporate group can receive is $20 million.
PPP loans are intended to help small businesses maintain payrolls and continue necessary payroll-related payments like rent and utilities. The full allowable uses of the loan are:
The PPP reboot is designed to help businesses that are struggling the most right now. Here are some of the notable provisions:
Yes, PPP funds are still available. The program was reopened in January 2021 through the PPP Flexibility Act. Applications will remain open until March 31, 2021, or until funds are exhausted—whichever comes first.
A Paycheck Protection Program (PPP) loan is a potentially-forgivable government-backed loan designed to help small businesses and nonprofits that have experienced business disruptions due to the COVID-19 pandemic. Eligible borrowers can qualify for up to 2.5 times their monthly payroll costs. PPP loans can be used to pay for payroll and other pandemic-related expenses, and eligible expenses incurred/paid for during the 24-week period following receipt of loan funds may be eligible for loan forgiveness.
PPP loans are calculated based on 2.5 times your business’s (or organization’s) monthly payroll costs. If you own a restaurant, hotel, or live venue that falls under a NAICS code starting with “72,” you can apply for 3.5 times your monthly payroll costs for your Second Draw.
Payroll costs include compensation, as outlined above, along with other payroll-related costs like retirement payments, state and local taxes on payroll, payment for vacation or paid leave, group healthcare costs, and allowances for separation or dismissal.
For a comprehensive outline of what is used and excluded, you can visit our PPP loan estimator, where you can also get an estimate on your potential PPP loan size.
To qualify for a PPP loan, you must certify that your business has sustained economic injury due to the COVID-19 pandemic. This certification is required to ensure that funds are distributed to small businesses that have been hit the hardest by business disruptions due to the pandemic.
Yes, you can qualify for a PPP loan even if you already have other loans, including other SBA loans. However, you cannot use the funds from PPP loans and other loans for duplicate use at the same time. For example, if you use a disaster loan (EIDL or loan advance) to pay your business’s rent in February, you cannot also apply for a PPP loan to cover February rent.
Applications will remain open until March 31, 2021—or until funds are exhausted. The program was reopened in January 2021 through an extension of the PPP Flexibility Act (PPPFA).
The PPP Flexibility Act, signed into law on June 5, 2020, has provided previous expansions to the program aimed at increasing flexibility for borrowers. In the past, Congress used the PPP Flexibility Act to:
If you received a PPP loan previously, you may be eligible to receive another round of funding—equal to or greater than the funds you received in your original loan (depending on your business type). This is referred to as a “Second Draw” on your PPP loan.
The SBA makes a distinction that this is not a separate loan but an additional draw on your loan. You must use your SBA loan number from the First Draw when you apply for your Second Draw.
Who can qualify for a Second Draw? You can qualify for your second round of PPP funds if you:
How much can you get with a Second Draw on your PPP loan? Eligible businesses can qualify for the exact same amount that you did in your First Draw (in this respect, it is like a second PPP loan). That means most qualifying businesses can receive up to 2.5 times their monthly payroll costs. Businesses with a NAICS code beginning in “72” may qualify for up to 3.5 times their monthly payroll costs. This provision was included to allow the hardest-hit businesses to secure even more funds the second time around.
For full details on how PPP Second Draws work, please visit the PPP Second Draw Page.
Once a borrower receives a Preferred Lender Program (PLP) number for their loan, the loan is approved by the SBA, and funds are reserved for the borrower. Starting on the date a borrower receives a PLP number, the lender has 10 calendar days to disburse funds. The loan must be disbursed in full, and the 24-week loan forgiveness period begins the day funds are disbursed.
If a lender cannot disburse funds due to delays from a borrower, like missing paperwork, the lender has 20 days to disburse funds. If they haven’t received the necessary information from the borrower by the end of that 20-day period, the loan will be canceled. If loan funds are designated for the refinancing of an Economic Injury and Disaster Loan (EIDL), the funds will be deducted from the disbursement amount and paid directly to the SBA by the lender.
For portions of the loan that are not forgiven, payments are deferred for the first 10 months. But keep in mind that interest will accrue during the 10-month deferral period.
PPP loans are eligible to be forgiven, up to 100% of the loan principal if the funds are used appropriately. And here’s a perk: the SBA is releasing a simplified application for businesses who received loans under $150,000, which will make it even easier to apply for PPP loan forgiveness.
Here’s what you need to know about what qualifies, how to apply, and how to calculate your potential PPP loan forgiveness.
Any costs incurred and payments made during the 24-week period beginning on the date the loan is disbursed may be eligible for forgiveness.
Note that the forgiveness amount may not exceed the principal amount of your PPP loan. The amount of the loan that may be forgiven may be reduced proportionally if you have laid off employees or reduced wages.
Due to the SBA anticipating a high number of borrowers requesting PPP loan forgiveness, it is anticipated that no more than 40% of forgiven amount may be for non-payroll costs.
Check out our PPP loan forgiveness page for more details about forgiveness calculations.
Yes, your PPP expenses will now be tax-deductible. We expect the IRS to release further guidance on this and we’ll provide more detail once they do.
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California loans made pursuant to the California Financing Law, Division 9 (commencing with Section 22000) of the Finance Code. All such loans made through Lendio Partners, LLC, a wholly-owned subsidiary of Lendio, Inc. and a licensed finance lender/broker, California Financing Law License No. 60DBO-44694.