SBA Coronavirus Assistance Program Apply for a Paycheck Protection Program Loan
BlueVine can help you get a COVID-19 relief loan quickly. Use
funds to help pay your employees and cover monthly expenses.
SBA funds are limited.
Deadline to apply is August 8, 2020
Loans up to $2 million
Interest rates at 1.0%
No payments for 6 months
The Paycheck Protection Program (PPP), which ended on August 8, is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This multi-billion-dollar program provided small businesses with cash-flow assistance through 100% federally guaranteed loans. A PPP loan has a maturity of 2-to-5 years, an interest rate of 1.00%, and can function like a non-taxable grant for eligible businesses1. Congress is currently considering an additional assistance program that BlueVine intends to participate in.
The loan covers expenses for 24 weeks starting from the loan origination date, or until December 31, 2020, whichever occurs first. At least 60 percent of the PPP loan must be used to fund payroll and employee benefits costs. The remaining 40 percent can be spent on mortgage interest payments, rent and lease payments, or utilities. If these guidelines are met, you’ll be able to have 100% of the loan forgiven.
What you need to know
- We are closely tracking the latest guidance from the Small Business Administration (SBA) and are working diligently to digitize the latest SBA Forgiveness Forms in our BlueVine platform.
- Congress is considering additional changes that would make the forgiveness process even easier for businesses with loans of less than $150,000. If your loan falls into this category, you stand to benefit by waiting to apply for forgiveness until later this year.
- If you’ve received a PPP loan through BlueVine and Celtic Bank, we’ll contact you by email closer to when your covered period has ended, at the end of 24 weeks from your loan origination date. Borrowers who had their loans originated by other banks will be contacted by that bank and their loan servicer.
- We’re still working through a high volume of inquiries. As your partner for the PPP loan, know that we are taking great care to provide you with the most seamless forgiveness process possible.
- Thank you for your patience. We hear you and know that you may be eager to submit documents. We will contact you by email and ensure that you have the information you need to submit your loan for forgiveness.
- If you’ve already received a PPP loan or are considering getting one, many accountants recommend opening a new bank account specifically for PPP-related expenses. Streamline the loan forgiveness process and alleviate the stress of sorting through transactions by separating expenses. Learn more about BlueVine Business Checking.
- Payroll tax filings such as 941, 940/944, 1120, Schedule C, or payroll processor records
- Bank statements or bank connection
Frequently asked questions
The SBA’s Paycheck Protection Program is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This program provides small businesses with cash-flow assistance through 100% federally guaranteed loans.
The amount of loan forgiveness is generally calculated as payroll costs incurred 24 weeks after disbursement of your loan (excluding compensation over $100,000), as well as payment of mortgage interest, rent, or utilities during that time. You must use 60% of the borrowed loan amount for payroll costs, and then the remainder on other approved expenses, in order to qualify for full forgiveness.
Yes, just like your application, you may complete the loan forgiveness process with or without the assistance of an outside professional. If you have any questions about our platform, our team is there to answer your questions in that regard. BlueVine is not the ultimate SBA lender, so it does not itself pay agent fees.
We are closely tracking the latest guidance from the Small Business Administration (SBA) and are working diligently to digitize the latest SBA Forgiveness Form 3508 in our BlueVine platform. The SBA has currently not provided a way for lenders like BlueVIne to submit completed forgiveness forms. We will contact you by email closer to when your covered period has ended at the end of 24 weeks from your loan origination date.
- Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee);
- Employee benefits including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit;
- State and local taxes assessed on compensation
- For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis.
- For multi-member LLCs: self-employment earnings reported to U.S.-based general partners on the 2019 Schedule K-1, net earnings from self-employment tax, capped at $100,000 on an annualized basis per partner.
- Yes, you will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utilities payments over the 24 weeks after getting the loan. Per SBA program rules, payroll must be 60% of the forgiven amount and the remaining 40% must be spent on allowable expenses under the PPP Final Rule.
- You will also owe money if you do not maintain your staff and payroll.
- Number of Staff: Your loan forgiveness will be reduced if you decrease your full-time employee headcount.
- Level of Payroll: Your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019.
- Any amount not forgiven continues as a loan on the original terms, which 1.00% interest, no payments for the initial 10 months of the term and a maturity date 2-5 years from the date of disbursement2.
- If you didn’t use your entire loan by the end of your covered period, the remaining amount must be repaid to your lender. You will have 10 months from the end of your covered period to apply for forgiveness and begin payments on your loan remainder, which will accrue 1.00% interest until the loan is repaid in full. If you do not want to make interest payments, return the remainder of your loan to your lender as quickly as possible. There are no prepayment penalties.
The CARES Act requires the lender or servicer to issue a decision on the forgiveness application within sixty days of its receipt of the application and then send to SBA. The SBA has 90 days to review and issue its decision on a forgiveness application.