COVID-19 (CARES Act) Paycheck Protection Program FAQs
On April 21st, the Senate approved $310 billion more for COVID-19 (CARES Act) Paycheck Protection Program (PPP) loans, and the House passed the second PPP tranche on April 24th.
Azlo is collaborating with Fundera and Kabbage to help our customers quickly find and apply for loans through the Paycheck Protection Program. You can start the application process from your Alzo account.
Here’s a list of some frequently asked questions:
What is the COVID-19 (CARES Act) Paycheck Protection Program?
- As The Small Business Administration defines it – The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
Who may be eligible for a Paycheck Protection Program (PPP) loan?
- Small businesses with 500 or fewer employees are eligible to apply for the PPP. There are exceptions to this rule, so please refer to the SBA’s guidelines for the complete guidelines.
- Sole proprietors, independent contractors, and self-employed individuals are eligible to apply as well.
What are some of the documents and information required to apply for the PPP loan?
- Standard business documents (business type, Tax ID, etc.)
- Loan amount requested
- Employee count
- Information on business owners
- Business bank statements for the past 12 months
- Tax documentation (visit the SBA for the updated list)
- Account verification letter (as an alternative to a voided check)
- 1099-MISC form for sole proprietors, independent contractors
- Please work with your lender to determine the full list of documentation required
What are some of the expenses that qualify for the PPP loan forgiveness? - Expenses for wages, commissions, or similar compensations can be forgiven - Employee benefits including costs for vacation, parental, family, medical, or sick leave - If a small business uses at least 75% of their loan proceeds to keep their staff on payroll - No more than 25% of non-payroll expenses will be forgiven - 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 each employee. Visit the U.S. Department of The Treasury for the full list of regulations.
Other than the PPP, what can I do to access capital or manage my business debt? - The SBA offers multiple Coronavirus relief programs. Visit SBA’s website for the list of available options. - Many banks are working with customers to manage their existing obligations. Reach out to your loan servicer to see what options are available. - As always, be sure to check your local and state opportunities
How do I calculate the maximum amount I can borrow? - The loan amount is typically determined by taking your company's average monthly payroll over the prior 12 months and multiplying that by 2.5. - You can also refer to the SBA PPP loan calculator
Hi there! This post exists to offer you (hopefully) useful information and insights, but it cannot take the place of personalized professional advice. Please consult a qualified expert if you have questions about your business. Also, Azlo doesn’t endorse any third-party sites that are linked here.
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