STAMFORD, Conn., Feb. 23, 2021 /PRNewswire/ -- In the first 42 days of the second draw of the Paycheck Protection Program ("PPP"), eligible small business owners have received approvals for over $140 billion in forgivable loans guaranteed by the U.S. Small Business Administration. With 37 days remaining in the Program, SBA Funding commits to providing further assistance to the smallest of small businesses guided by the most recent changes to the Program.
Beginning February 24, 2021 and extending for a period of 14-days, PPP loan applications will only be processed for eligible small businesses with fewer than 20 employees. This directive out of the Biden-Harris Administration in conjunction with the U.S. Small Business Administration makes several other provisions for small businesses including:
Revising the loan calculation formula to facilitate more PPP loans at higher amounts for businesses without any employees
Removing other standard SBA eligibility restrictions that further reduced the pool of eligible borrowers
SBA Funding has facilitated over twenty thousand PPP loans for businesses with fewer than 20 employees during the second draw of the Program.
"We know how difficult it can be for the smallest of small business owners to stop doing the work to keep their businesses afloat during these times to gather the documents they need to apply," said Steve Rabinovici, SBA Funding's Chairman. He added, "We implore sole proprietors and independent contractors to gather their documents, ask us questions if you have them and apply – we're here to help."
Tax documents that reflect eligible 1099 income like IRS Form 1040 and Schedule C that shows a profit and loss from business income are the typical forms required. The U.S. Small Business administration is expected to issue guidelines on how the new directive will change the way loans are calculated, but these documents are required to determine PPP loan amounts.
Small businesses have the opportunity to apply for additional, long-term SBA financing through SBA Funding. If you would like more information about this topic, please call Rebecca Harris at (203) 339-2643 or email [email protected].
SBA Funding is a division of Business Funding Group. SBA Funding, together with its affiliate, SBA Loan Group, is one of the largest packagers of SBA loans to small business owners in the country. We are a team of entrepreneurs for entrepreneurs. Our SBA expertise and client first approach ensures that our clients maximize their loan amounts and close quickly.