The COVID-19 crisis has affected businesses across the globe, and small businesses are the most at risk of shutting their doors for good. According to the Chamber of Commerce, as a result of the pandemic, one in four small businesses in America is at risk of going under within just two months. Luckily, the U.S. Small Business Administration (SBA), has taken swift action to help small businesses stay afloat. Four different SBA loans have been rolled out as part of their Coronavirus response, and the ones we will be discussing today are the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan. Read on to learn how to apply for Paycheck Protection Program.
The CARES Act, the US government has set aside $350 billion in loans for small- and medium-sized businesses with less than 500 employees to cover payroll and other necessary costs and in operation prior to February 15, 2020.
For many small businesses, their team is the heart and soul of their business, so the thought of having to lay people off due to financial hardship is a tough pill to swallow. Enter the Paycheck Protection Program (PPP), an SBA loan that is intended to help companies keep their staff on payroll and avoid firings/layoffs.
While this money is indeed a loan that is meant to be paid back, SBA will “forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.”
The PPP program was reopened in Jan 2021 to include new loan availability and additional funding for businesses presently receiving PPP loans. The closing date for the new PPP is March 31, 2021.
SMBs will need to fill Paycheck Protection Program Form, then apply through an eligible lender. It’s a quick and easy form, but bear in mind that time is of the essence. There are millions of small businesses in the United States fighting to stay alive, so it’s important to submit your Paycheck Protection Program (PPP) application as soon as possible.
Small businesses experiencing a temporary loss of revenue due to COVID-19 are eligible for an infusion of up to $10,000 through this program (amounts vary based on the number of employees and other factors). This loan advance does not have to be repaid—whether or not your loan application is approved, making EIDL a good option if you need to access capital quickly and don’t need a bigger loan amount.
You can apply for both PPP and EIDL, but not for the same reason. If you have already applied for an EIDL loan to cover payroll fees, you must use your PPP loan to repay this.
Electronic signatures allow you to turn documents around faster than ever, and ensure that you are submitting complete, accurate paperwork. When time is of the essence, electronic signatures are your friend – especially when you don’t have access to your office space, which is likely where your printer and scanner live.
If you are thinking about how to fill Paycheck Protection Program form online, it will be very straightforward with Signeasy.
How to fill Paycheck Protection Program form online on Web: See it in action.
How to fill Paycheck Protection Program form online on mobile: See it in action.
Yes, absolutely! You will have no problem submitting an electronically signed document for your SBA loan. In fact, SBA has been accepting digital signatures as wet ink equivalents since 2015.
In Signeasy’s case, we comply with all major eSignature legislation, including the eSIGN Act and UETA in the United States, eIDAS in the European Union, and GDPR data security regulations. For more information on eSignature legality around the world, we’ve put together a handy blog post.
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