Paycheck Protection Program Loan

We are accepting applications for first time PPP loans as well as second draws.
COVID19 Open America
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Benefits of an SBA-Backed Paycheck Protection Program Loan

Low Interest Rate

Just 1% APR for the entire life of your Paycheck Protection Program loan.

Loan Forgiveness

For qualified loan uses like payroll, mortgage interest, rent, and utilities.

Defer Payments

Payments deferred for the first 6 months. Interest will accrue during this time.

5-Year Term

Spread out payments over a five-year term to make your loan even more affordable.

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Is Your Small Business Eligible for the Program?

To qualify for a PPP loan, your business needs to meet the following criteria:

  • Your business was in operation as of February 15, 2020.
  • You have 500 or fewer employees. 
  • You’re an independent contractor, sole proprietor, self-employed individual, or business partner (though only one PPP application can be submitted per partnership).
  • You have employees for whom you paid salaries and payroll taxes are reported on Form 1099-MISC. This also applies for paid independent contractors.

And certify that: 

  • Economic uncertainty makes your loan request necessary.
  • You will use the funds to retain workers, maintain payroll, and/or make payments on mortgages, leases, and utilities.
  • You do not have a current PPP loan or EIDL application for the same purpose (over the same period).
  • From February 15, 2020–December 31, 2020, you did not receive a PPP loan or EIDL for the same purpose (over the same period).
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If you are applying for a second draw

  • Your business has fewer than 300 employees
  • You can show a 25% revenue reduction during the first, second, third, or fourth quarter of 2020 relative to the same quarter in 2019

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.

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How Can You Use Your Paycheck Protection Program Loan?

  • Payroll costs
  • Healthcare costs related to the continuation of group healthcare benefits during periods of sick, medical, or family leave, as well as insurance premiums.
  • Mortgage interest payments (but not prepayment or payment of the mortgage principal)
  • Rent
  • Utilities
  • Interest on any other debt obligations incurred before February 15, 2020
  • Refinancing an SBA EIDL received between January 31, 2020 and April 3, 2020
  • Covered expenditures such as business software or cloud computing services that facilitate:
    • business operations
    • product or service delivery
    • the processing, payment or tracking or payroll expenses, human resources, sales, and billing functions
    • accounting or tracking of supplies, inventory, records, or expenses
  • Covered property damage costs
  • Covered supplier costs
  • Covered worker protection expenditures
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What you need to apply:

The date you started your business

You need to have been in business on February 15, 2020

Documentation verifying your average monthly payroll costs

Payroll costs include salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee).

Employee benefits including costs for vacation, parental, family, medical, or sick leave; an allowance for separation or dismissal.

Payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit.

State and local taxes assessed on compensation.

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.

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Business owners applying for COVID-19 loan

How to earn loan forgiveness

You may be eligible to have all or a portion of the loan principal and interest forgiven if you use the funds for certain qualifying costs incurred and payments made for payroll, mortgage interest, rent and utilities during the first eight weeks following the date the loan is made. You will have to provide documentation.

Because the SBA expects a high number of applicants for PPP loans, no more than 40% of the forgiven amount can be for non-payroll costs (i.e., mortgage interest, rent, and utilities). If your business has laid off employees, that will also affect how much your loan can be forgiven. The total effect on your PPP loan’s forgiveness-eligibility depends on a calculation that your funding manager can walk you through to give you the specific answer for your business.

Who can apply?

Small businesses with 500 or fewer employees whose principal place of residence is in the United States–including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors–are eligible. Businesses with more than 500 employees are eligible in certain industries.

For a second draw:

  • Your business has fewer than 300 employees
  • You can show a 25% revenue reduction during the first, second, or third quarter of 2020 relative to the same quarter in 2019

Ready to get started?

Apply now to access the $284 billion in federal funding to help small businesses

keep workers employed amid the pandemic and economic downturn.

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