SBA PPP Loan Resources

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COVID Business Relief

SBA PPP Loan Information

Paycheck Protection Program for US Businesses

The global pandemic has made this a challenging time for businesses all over the world. Fortunately, Congress enacted the CARES act which included $900 billion in COVID-19 pandemic stimulus and relief. The 2nd round of funding became available in January of this year, and applications are currently being accepted until May 31, 2021. We encourage businesses to apply as soon as possible, due to significant demand for this loan program.

General Details of SBA PPP financing:

  • Maximum loan amount of $2,000,000
  • 1% Interest Rate
  • 5 Year Term
  • Potentially 100% Forgivable
  • No collateral or personal guarantees
  • PPP loan expenses are tax deductible

Do I qualify for an SBA Paycheck Protection Program Loan?

Who is Eligible?

Businesses with fewer than 300 employees that have been negatively impacted by the pandemic are usually eligible to apply for a PPP loan. Even though that have already received a previous PPP loan can still qualify for the second round of funding. If you are applying for a 2nd loan, you will generally qualify for funding up to 2.5 times monthly payroll costs. Also, due to new SBA policy changes, restaurants and food establishments can apply for 3.5 times monthly payroll costs. Also, businesses will have had to be in operation as of at least February 15, 2020. That said, even self-employed individuals (independent contractors) can also apply.

Differences in the 2nd round of PPP funding compared to the 1st round:

  • The maximum loan size for PPP loans has been limited to $2 million (from a previous $10 million)
  • The process for lenders to approve smaller PPP loans has improved, making it easier to apply and faster to receive funding,.
  • Businesses with NAICS code beginning with 72 (generally hospitality businesses), can now receive up to 3.5x their average monthly payroll, compared to 2.5x prior.
  • The loan forgiveness application for PPP loans below $150,000 has been modified to an easy 1-page application. This will make obtaining loan forgiveness significantly easier.
  • Eligibility has expanded to include non-profit 501(c)(6)s, housing cooperatives, direct marketing organizations, and there is now greater flexibility for , self-employed individuals, sole proprietors, and independent contractors (also known as “gig workers”0.

 

See our guides below for more information on how to apply for the SBA PPP loan with GoKapital.

GoKapital's SBA PPP Loan Application Process

Do I qualify for an SBA Paycheck Protection Program Loan?

Who is Eligible?

Businesses with fewer than 300 employees that have been negatively impacted by the pandemic are usually eligible to apply for a PPP loan. Even though that have already received a previous PPP loan can still qualify for the second round of funding. If you are applying for a 2nd loan, you will generally qualify for funding up to 2.5 times monthly payroll costs. Also, due to new SBA policy changes, restaurants and food establishments can apply for 3.5 times monthly payroll costs. Also, businesses will have had to be in operation as of at least February 15, 2020. That said, even self-employed individuals (independent contractors) can also apply.

Differences in the 2nd round of PPP funding compared to the 1st round:

  • The maximum loan size for PPP loans has been limited to $2 million (from a previous $10 million)
  • The process for lenders to approve smaller PPP loans has improved, making it easier to apply and faster to receive funding,.
  • Businesses with NAICS code beginning with 72 (generally hospitality businesses), can now receive up to 3.5x their average monthly payroll, compared to 2.5x prior.
  • The loan forgiveness application for PPP loans below $150,000 has been modified to an easy 1-page application. This will make obtaining loan forgiveness significantly easier.
  • Eligibility has expanded to include non-profit 501(c)(6)s, housing cooperatives, direct marketing organizations, and there is now greater flexibility for , self-employed individuals, sole proprietors, and independent contractors (also known as “gig workers”0.

 

Who is Eligible?
Under the program, eligible small businesses in all 67 Florida counties, including Miami-Dade and Monroe Counties, may apply for loans for up to $50,000 for 1 -year terms. Loans of up to $100,000 may be made in special cases warranted by small business needs.

To be eligible for this disaster relief program, below are general requirements:

  • The business must be a for-profit, privately held small business with a place of business in Florida.
  • The business must be located in a Florida county designated as a disaster area, including Miami-Dade & Monroe.
  • The business must have at least 2 years of operation.
  • The business must have gross annual revenues of at least $50,000 per year.
  • The business must be an eligible industry/business type.
  • The business must be able to demonstrate economic injury as a result of COVID-19.
  • The business must be an employer with a minimum of two (2) and maximum of one hundred (100) employees within the previous year. Documentation of employee compensation must be provided at the time of application. Note: For the purposes of this program, employee is defined to include 1099 employees.

Note: The need for the loan and use of proceeds must be directly related to the economic injury caused by COVID-19

Loan Program Instructions

Checklist for Documents to Complete the Florida Small Business

Supply all required supporting documentation:

    • Business Tax Returns (2018-2019) – At a minimum, copies of the previous two years federal income tax returns for the applicant business, including all schedules.
    • Employer Tax Documentation, i.e., IRS Form 941, IRS Form, IRS Form W-2s and/or IRS Form 1099-MISC for a minimum of two employees.
    • Individual Tax Returns: At a minimum, copies of the previous two years federal income tax returns (IRS Form 1040 and all schedules).

Applicant may also provide the following additional information to assist the loan committee in making an informed loan decision:

  • Interim financial statements (profit & loss) for the current year-to-date.
  • Additional filing requirements providing monthly sales figures.
  • Explanation of credit report concerns and issues.

Other documents that may be included in the application:

  1. Valid ID for each owner.
  2. Current county business license.
  3. Previous 6 months bank statements of all business accounts.
  4. Income statement from the previous three years.
  5. Personal financial statements of owner(s).
  6. Business financial statements of owner(s).
  7. Business liability policy.
  8. Listing of all outstanding liabilities.
  9. Listing of all outstanding liabilities.

For questions regarding the Florida Emergency

BRIDGE LOAN PROGRAM

Please contact GoKapital at 1-866-257-2973 or apply@gokapital.com

    Eligibility & Loan Process

    1. Applicant (eligible business owner(s)) completes and signs the application form and gathers required support documents.
    2. Applicant submits the completed application and supporting documentation
    3. The applicant’s eligibility, identification, completeness of application and supporting documentation will be reviewed. If the applicant is deemed to be eligible, and the application and support documentation are complete, a personal credit report for each applicant from Florida First Capital Finance Corporation (state appointed fiscal administrator of the program) and forward all materials to the Loan Review Committee for loan consideration. If the applicant is eligible, the applicant will be notified. If the application or supporting documentation is incomplete, or the loan review committee requests additional information, we applicant will also be notified.
    4. The Loan Review Committee will review materials and approve or deny the loan request. Note: the decision concerning the granting of a loan is that of the independent loan review committee.
    5. We will notify the applicant of the decision of the Loan Review Committee.
    6. If approved, we will assist in further preparing the loan closing documents for the distribution of loan proceeds. If not approved, the applicant will receive written notification from the Florida state entity handling disbursement of loan funds.

    .

    Loan Closing

    1. Loan Recipient: Loans will be made to individuals who are at least 51% owners of the business.
    2. Use of Proceeds: A borrower will be required to sign an agreement that proceeds of the loan will be used only for purposes of maintaining or restarting the business in the designated area. Use of proceeds to pay off debts already incurred for qualifying business maintenance or restart purposes may be authorized on a case-by-case basis.
    3. Dedicated Sources of Repayment: A borrower will be required to certify that the proceeds of insurance claims, other loans applied for or to be applied for, or other financial assistance will be used to repay the loan.
    4. Closing Documents: Closing documents, prepared by the Program Administrator and provided to the applicant at closing, will include:
      1. Promissory Note.
      2. Business Purpose Statement.
      3. Loan Settlement Statement.
      4. Assignment of Proceeds from other Sources.
      5. Closing Checklist.
      6. Payment Coupon.