Amazon sellers impacted by the pandemic have an excellent funding option to keep their business afloat or rebuild whether they have employees or not.
The Paycheck Protection Program (PPP) is a government loan that helps businesses fund payroll costs and more. Of particular note is that a PPP loan may be forgiven (partially or completely) if you meet all of the employee retention criteria.
The program will close on May 31, 2021. If you received an initial loan and plan to apply for a second or first PPP loan, start gathering the information needed for the loan now.
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Following the 2020 loan disbursement, the Paycheck Protection Program was put in place again for 2021. The program was created to help struggling companies cover operating expenses and pay employees during the coronavirus pandemic. Loan terms are the same for every participant and loans could be partially or fully forgiven if they meet certain criteria.
Sole proprietors, self-employed workers, independent contractors, and many other types of borrowers can apply. So whether or not you have employees, you may be eligible. To qualify for this second round of funding, your business also needs to meet these requirements:
Like the initial PPP loans, this round of funds are forgivable if they are used for covered costs within 8-24 weeks of receiving the loan. These costs have been expanded and now include:
Note that at least 60% of the total loan amount needs to be used for payroll expenses in order to qualify for full loan forgiveness.
Here are details about the fund amount available to qualified businesses:
The new COVID-19 relief bill guidelines include:
The documentation required to substantiate an applicant’s payroll cost calculations is generally the same as documentation required for the first PPP Loan. However, no additional documentation to substantiate payroll costs will be required if the applicant used calendar year 2019 figures to determine its first PPP Loan amount.
Documentation may also include the following:
Note that different documentation requirements may differ based on your lender. SmartBiz has simplified documentation required for independent contractors, sole proprietors, and single entity LLCs. All you need are tax form 1040, Schedule C. bank account and routing info along with ID number (either Driver’s License or Passport). Additionally, the SmartBiz Loans PPP application helps calculate your maximum eligible loan amount.
SmartBiz Loans is here to help you apply for this new round of PPP funding. The banks in the SmartBiz network are processing applications and ready to help you get the funding you need in 2021.
Determine if a PPP loan is right for you or start a streamlined application on the SmartBiz Loans website.
To help you move through the application and understand the process, SmartBiz Loans has a video with step-by-step guidance.
The availability of PPP loans remains subject to SBA guidance and other factors, including the amount of funding available to banks and the quantity of eligible applicants considered on a first-come, first-served basis. The information provided above is for educational purposes only. Please consult the SBA’s website for actual rules and the most current guidance.