Protection Program Loan Is Here

Apply for Your First or Second Draw PPP Loan

The Federal Government recently allocated additional funding to reopen the US Small Business Administration (SBA) Paycheck Protection Program (PPP), with the deadline extended to May 31, 2021.

Benefits of the SBA Paycheck Protection Program Loan

Up to $2,000,000 in Funding Available!

  • Low Interest Rate

    Only 1% in interest

  • No Credit Check Required

    Unlike other SBA loan programs, the SBA PPP does not require a credit check.

  • Quick Loan Approvals

    Receive up to 2.5 times average monthly payroll expenses.

  • Repayment Term

    5 Years

The new round of the Paycheck Protection Program, administered by the SBA, makes continued financial support available to eligible small businesses to help keep employees and stay open safely during the COVID-19 pandemic.

We are ready to help you!

You may qualify for up to $2,000,000

GoKapital is determined to support the small business community during this time of uncertainty. It’s our mission to provide all business owners the resources they need to keep their businesses going.

We will help you obtain your Initial Draw as well as you Second Dray if you already received a PPP loan last year.

Congress designated $137 billion for “second-draw” loans as part of a larger funding and relief package.

The bill, signed into law on Decebmer 27, includes a total of $284.5 billion for PPP loans and the SBA reopened applications starting on January 11, 2021.

The SBA Paycheck Protection Program is designed to assist small businesses in retaining employees throughout and after the coronavirus crisis. 


What you need to apply

First Draw

→  Basic information about you and your business
→  Your average monthly payroll costs
→  Details of full-time employees and associated payroll costs
→  Details of all owners with greater than 20% ownership stakes
→  Proof of mortgage interest payments, rent payments, and utility bills
→  Bank statements
 Payroll tax filings such as 941, 940, 1099, or payroll processor records

Second Draw

→  PPP applicants must wait for SBA guidance on required documentation
→  You must demonstrate a ≥25% loss in revenue for a certain period
→  You must have used your entire first-round PPP loan
→  You must have fewer than 300 employees
→  You must have been in operation on February 15, 2020
→  Additional conditions may apply, and various documentation is needed
→  We’re monitoring PPP information and will provide SBA updates when available

What is the SBA
Payback Protection Program?

As a part of the CARES Act and Consolidated Appropriations Act, 2021, the Paycheck Protection Program provides small business loans with up to 100% forgiveness to help businesses impacted by COVID-19. The goal of this program is to help companies retain their employees and assist with operational business expenses. These loans are meant to help small businesses cover employee salaries, worker protection equipment, rent/mortgage payments, utilities, and other business related debt-obligations.  These are a few important details that you should know before applying:

  • The business must have less than 500 employees (subject to limited exceptions), including 501(c)(3) nonprofit organizations, 501(c)(19) veterans organizations, and/or Tribal businesses.
  • Loan proceeds may only be used for specific expenses, such as payroll costs, utilities, mortgage interest, rent/lease payments, group healthcare benefits, interest on existing debt, and other approved efforts to retain employees.
  • Paycheck Protection Program loans do not require a personal guarantee nor collateral.
  • Maximum loan size is up to $2 Million and business can apply for a second loan (Draw) as long as they have spent the entire amount of the first loan.
  • Fixed interest rate of 1% and payments will be deferred for 10 months.
  • 5 Year repayment term.
  • The deadline for applying is now May 31, 2021, and we advise businesses to apply as soon as possible.
  • If a business uses at least 60% of the loan maintaining its employees during the covered period of the loan, then they need to submit a PPP Loan Forgiveness application.
SBA Paycheck Protection Program

Frequently Asked Questions

Loan forgiveness requirements for second-draw PPP loans are generally the same as those for first-draw loans. The funds need to be spent on covered costs within 24 weeks. PPP loan funds may be used for the following approved expenses:

  • Payroll costs or individual salaries
  • Insurance benefits
  • Employee salaries and/or commissions
  • Rent payments and/or mortgage payments
  • Utilities
  • Software or cloud computing costs for business operations NEW
  • Costs related to property damage and vandalism or looting due to public disturbances not covered by insurance or other compensation NEW
  • Costs of the supply of goods that are essential to business operations NEW

Covered worker protection expenditures that help adapt business activities to COVID safety requirements NEW
At least 60% of your total second-draw loan must be used on payroll costs to receive full forgiveness. The remaining funds can be used on other allowable expenses.

For an Initial Draw: All businesses that were in operation on or before February 15, 2020 – including sole proprietorships, self–employed individuals, and independent contractors – with 500 or fewer employees and have not received a grant under section 24 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act can apply for a first PPP loan.

For Second Draw: All businesses that were in operation on February 15, 2020 – including sole proprietorships, self–employed individuals, and independent contractors – with 300 or fewer employees, have not received a grant under section 24 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, have used or will use the full amount of their first PPP loan and can demonstrate at least a 25% in loss revenue in the first, second, or third quarter of 2020 relative to the same 2019 quarter can apply for a second PPP loan.

The following business will not be eligible: Business that receive grants under the new “live venue” program, publicly trade companies, and business not in operation as of February 15, 2020. We offer alternative options for those who do not qualify for the SBA PPP loan.

Yes! However, you must have spent the full amount of your initial loan on eligible expenses or will do so by the time your second-draw loan is disbursed and you meet the other SBA eligibility requirements (general eligibility requirements are listed in the next FAQ).

A borrower is generally eligible to apply for a Second PPP loan if the borrower:

  • Previously received a first PPP loan and will or has used the full amount on authorized uses
  • Has no more than 300 employees
  • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020; and Otherwise meets all SBA and lender requirements

The amount of your second loan depends on your payroll costs or your gross income if you’re self-employed, a sole proprietor, or a single member LLC that files on a Schedule C.
Most eligible businesses can receive up to 2.5x their average monthly payroll costs for calendar year 2020 or 2019. (Note that businesses in the accommodation and food service industry can now receive up to 3.5x payroll costs.)
The maximum loan amount is capped at $2 million for second PPP loans, compared to $10 million for first PPP loans.

Second PPP loans are only available to businesses that have spent the full amount of their initial loan on eligible expenses or will do so by the time their second-draw loan is disbursed and meet the other requirements.

For a first draw, your loan amount will be 250% (or 2.5 times) your average monthly payroll.

For a second draw, your loan amount will be 250% (or 2.5 times) your monthly average payroll for most industries. If your business is a restaurant or accommodations, your loan amount will be 350% (or 3.5 times) your monthly average payroll.

Your monthly payroll includes wages, tips, group life, disability, vision, and dental insurance, retirement benefits, and taxes. For purposes of calculating “Average Monthly Payroll”, most applicants will use the average monthly payroll for 2019, excluding costs over $100,000 on an annualized basis for each employee. For seasonal businesses, the applicant must use the average total monthly payments for payroll for any 12 week period selected by the employer between February 15, 2019 and February 15, 2020, excluding costs over $100,000 on an annualized basis for each employee. For new businesses, average monthly payroll may be calculated using the time period from January 1, 2020 to February 15, 2021, excluding costs over $100,000 on an annualized basis for each employee.

For Sole Proprietors, Independent Contractor, or Self Employed Individual

  • 2019 Schedule C
    • Even if 2019 1040 has not been filed, need to complete 2019 Schedule C for the SBA application
  • Note if you also pay W2 wages we will also need:
    • Q1-Q4 2019 941s (or 944)
    • Optional (may increase loan amount):
      • Q1-Q4 2019 State unemployment tax filings
      • Evidence of retirement contributions
      • Evidence of health insurance contributions / premiums

Additional documentation for payroll verification may be required or considered acceptable beyond those enumerated in Federal statute to determine eligibility. We require payroll verification to determine eligibility and size of your loan. Your account manager will reach out to obtain this documentation.

For both fist and second draw complete a simple online application to get started, you will be able to upload the required documents to our online portal.

Additional documentation for payroll verification may be required. We require payroll verification to determine eligibility and size of your loan. Your account manager will reach out to obtain this documentation.  Most likely we will request bank statements, payroll tax fillings (941, 940, or 1099) ,  proof or mortgage or rent payments and utility bills.

PPP borrowers that qualify could get the proceeds in 10 days after they receive the official SBA approval but due to the overwhelming demand it could take a bit longer

Yes. The approved uses of funds are:

Payroll costs such as:

  • Employee salaries (including commissions and tips)
  • Employee healthcare coverage (including group life, disability, vision, or dental insurance)
  • Retirement benefits
  • Vacation and paid leave (family, medical, etc.)
  • Taxes addressed on compensation

Non-payroll costs such as:

  • Rent payments
  • Utility bills
  • Interest payments (not principal payments) on mortgages or debt incurred before February 15th, 2021
  • Covered operations expenditures: Payment for any software, cloud computing, and other human resources and accounting needs.
  • Covered property damage costs: Costs related to property damage due to public disturbances that occurred during 2020 that are not covered by insurance.
  • Covered supplier costs: Expenditures to a supplier pursuant to a contract, purchase order, or order for goods in effect prior to taking out the loan that are essential to the recipient’s operations at the time at which the expenditure was made. Supplier costs of perishable goods can be made before or during the life of the loan.
  • Covered worker protection expenditure: Personal protective equipment and adaptive investments to help a loan recipient comply with federal health and safety guidelines or any equivalent State and local guidance related to COVID-19 during the period between March 1, 2020, and the end of the national emergency declaration.

The interest rate for Paycheck Protection Program loans is 1.00% fixed for the life of loan. The interest rate will apply to any portion of your loan amount that is not forgiven by the SBA.

You are eligible to apply for other SBA products such as 7(a) loans and Emergency Injury Disaster Loan (EIDL). However, if you are a an eligible person or entity (as defined under section 24 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act) that receives a grant under such section 24, you are not eligible for an SBA PPP loan or if you take an SBA PPP loan, you are not eligible for the section 24 grant.

Both the first and second draws can be forgiven if the proceeds are used on the approved use of funds, the SBA may approve for up to 100% of the principal amount of the loan to be forgiven. In order to be eligible for a fully forgiven loan, no more than 40% of the loan forgiveness amount can be attributed to non-payroll forgivable costs. Borrowers must also maintain certain levels of employees and compensation in order to qualify for loan forgiveness.

Monthly payments will depend on the amount borrowed and the loan term. Any amount not forgiven will have an interest rate of 1.00% fixed for the term set forth in your initial loan agreement. If you fail to apply for forgiveness, no payments will be due until 10 months after the end of your covered period.

Yes, customers can use the Paycheck Protection Program loan proceeds to pay interest with existing GoKapital loans. However, any amount applied to non-mortgage debt or principal payments will not qualify for loan forgiveness.

GoKapital loan consultants will be glad to help you and answer all of your SBA PPP Loan questions.  Call us at 1-866-257-2973 , you can also us at or use our contact form page..

Yes. You are eligible to apply for the Paycheck Protection Program if you receive an Economic Injury Disaster Loan grant through the SBA. However, the amount forgiven under the Paycheck Protection Program will be decreased by the amount of EIDL grant you receive.

Do you have clients in need of the SBA PPP loan?

Refer eligible businesses to GoKapital for the SBA Paycheck Protection Program, and if they receive funding, we will offer our partners a referral fee. This will not affect SBA PPP loan costs for the business, as lenders assess a standard processing fee for the disbursement of these loans. Our referral partners simply receive a portion of the lender's processing fee (per SBA guidelines).