So how can banks prepare to offer SBA PPP loans?
Take note of key dates:
February 15, 2020 - Your business, mortgage, lease or commercial loan must have been in effect before this date.
April 3, 2020 – the first date small business owners and nonprofits can apply for this loan
April 10, 2020 – the first date sole proprietors, independent contractors and self-employed individuals can apply for this loan
June 30, 2020 – the deadline to apply for this loan, unless funds are exhausted before this date.*
Make sure small business customers know what documents are needed to apply for this loan.
For example, Zions Bank has a loan application checklist to help its customers qualify for a loan under the SBA's PPP program. Typically, eligible small businesses must have
Less than 500 employees and
were in service on February 15, 2020 and
Had employees for whom the borrower paid malaysia business email list wages and payroll taxes or paid independent contractors, as reported on Form 1099-MISC
Creditworthiness is not a consideration for PPP loan approval.
Make sure you give your client the right relief
Ask your small business owner the following questions:
Do you need funds immediately?
If so, they should consider an Emergency Economic Injury Grant. This grant provides $10,000 in funding within three days.
Do you need funds for salaries?
If so, then the PPP loan is their best option. The features of the loans issued under a PPP will have a term of two years. The interest rate on these loans will be 0.5% and will not require any collateral or personal guarantee and will be 100% guaranteed by the SBA. The first payment will be deferred for six months, can be sold on the secondary market and there will be no prepayment penalties.
How does loan forgiveness work?
