The Paycheck Protection Program provides economic relief to small businesses negatively affected by the COVID-19 pandemic. LiftFund will be participating in the PPP for limited locations in our footprint. This page serves as a resource and will also host our application and interest forms starting next week.
Please review and prepare with the resources and information we have for you below, including the PDF form which you will need to complete after a full LiftFund application along with the documents required to proceed with the loan application process.
Resources to Prepare
1% fixed rate APR for the life of the loan
Payments deferred for six months for qualifying borrowers
Loan forgiveness on qualified uses like payroll, mortgage interest, rent and utilities.
Paycheck Protection Program (PPP) Loans
Small businesses need capital to survive this crisis and Congress has created the Paycheck Protection Program loan. Because of the reduced SBA requirements for PPP loans, small businesses will qualify for the SBA COVID-19 loans than previous programs.
They are simple
- Your business or non-profit was in operation as of February 15, 2020
- You’re an independent contractor or sole proprietor or your business/organization has either employees or independent contractors for whom they have associated payroll costs and reside in the U.S.
Use of PPP loan funds
PPP loans will help small businesses, including sole proprietors and independent contractors, and private non profits maintain payrolls and continue necessary payroll related payments like rent and utilities. The loan may be used for:
- Payroll costs: compensation in the form of salaries, wages, commissions, cash tip payments
- Healthcare costs: any costs related to the continuation of group healthcare benefits, including insurance premiums
- Mortgage interest payments (but not payments on the mortgage principal)
- Interest on any other debt obligations incurred before February 15, 2020
How is the PPP loan calculated for my business
PPP loans are calculated based on 2.5 times your business’s (or organization’s) monthly payroll costs. 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. Use our template to calculate your loan size here.
Comparison: SBA PPP loans the same as Economic Injury Disaster Loans
The PPP loan is different. PPP loans are available to all US Businesses based on the requirements. EIDLS are also available for small businesses that have suffered a negative economic impact because of COVID-19 pandemic. The EIDL advance and loan have more requirements and must be paid in full. If you have applied for an EIDL loan you can still apply for the PPP loan. If you have received the EIDL, you must disclose in the PPP application use of funds to roll it into the PPP loan. Click here for the full description on SBA’s site for the PPP and the Economic Injury Disaster Loan
Paycheck Protection Program Forgiveness
SBA expects a high volume of forgiveness requests. No more than 25% 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 some complicated math that we will help you calculate. You can also do an estimate on the excel sheet provided here. Please note it is an estimate.
To receive loan forgiveness, a borrower must provide documents verifying payments (on mortgage interest, rent, and utilities) and payroll (number of employees, pay rates, including IRS payroll tax filings and state income, payroll, and unemployment insurance filings). These documents must be certified from a representative of the business that the information is true.
The demand for small business financing has been tremendous. Our application for PPP is temporarily
closed. If you are interested in the program, please fill out the information below.
Thank you to the generous support of Goldman Sachs 10,000 Small Businesses program, LiftFund is able to provide the SBA Paycheck Protection Program.