The 6 Best Ways to Get Cash for Your Business NOW (for an Emergency) And What to Avoid
When disaster strikes, you need to know where you can turn for a business loan or other financing options with minimal turnaround time
During the last two rounds of the SBA Payroll Protection Program (PPP), Revenued proudly processed over $1.8B in PPP loans for businesses affected by Covid-19 through our online application platform powered by Cross River Bank.
The new Covid-19 relief bill that was signed by President Trump on December 27, 2020 allocates $284 B for a third round of SBA Paycheck Protection Program (PPP) Loans, and we will be offering the loan through the Revenued platform once again.
Prospective applicants should apply as soon as possible. Although the Program was recently extended, it is anticipated the current round of the SBA’s funding for the PPP will be exhausted in the near future. Whether you are a first-time applicant or a borrower seeking a second draw loan, we understand the urgency of PPP funding for your small business and we are working hard to facilitate this relief.
While there still may be outstanding changes to the program’s requirements prior to the SBA receiving applications, we wanted to share some highlights of the new program and answer some common questions that have come into our customer service team these past few days. Please be advised that the program requirements are subject to change prior to going live as established by SBA regulation. The below highlights of the new program and FAQs are meant to be a non-exhaustive overview and provide applicants only with basic information.
To learn what documentation is required for your specific business type, please select your entity below:
Our application is currently accommodating 1040 Schedule C applicants in accordance with the latest Program guidelines from the SBA.
As of Wednesday, February 24 at 9AM ET, the SBA has mandated a two-week freeze, ending on March 10, on the processing of PPP applications for businesses with 20 or more employees. During this period, applicants with 20 or more employees may still fill out and submit their application to Cross River, but these applications will not be approved by the SBA until the mandated freeze has expired and the loan has had time to be processed by the SBA. Employee count is based on the total number of employees, including full-time, part-time and seasonal employees.
If you are a 1040 Schedule C applicant with employees, and you wish to use your Line 7 income, please do not apply at this time.
We are updating our system to accommodate this change however the current application is only calculating based on net profit Line 31 for this applicant type. We anticipate being able to accept applications calculated with the gross income by Monday 3/8. Please check back at that time to see if we are able to accommodate that calculation.
If you are a 1040 Schedule C applicant without employees, you may apply at this time and choose to calculate your loan amount with either the gross (Line 7) or net (Line 31) calculation.
It may take up to 10 days for the closing documents to be sent via DocuSign and for funding to be disbursed once you have been notified of SBA approval. The DocuSign email will be sent to the primary email address used during the application process. Please ensure that the email is not in the spam or junk folder. The loan will not be funded until the loan documents are executed.
No. A borrower must submit their fully executed loan documentation in order to be funded and must return documents within 20 days or the loan will be cancelled.
Once you have executed the loan documents, it can take up to 10 days to receive your funding. You can use this search tool to find your app.
Yes, the program will be open for both first-time borrowers and borrowers looking for a second loan. Please note that the requirements for first-time borrowers and second time borrowers are different. Continue reading below for a non-exhaustive list of eligibility requirements and other helpful information. Please be advised that qualifying as an eligible business does not guarantee a PPP loan will be offered.
Yes, applicants may still apply for a Round B PPP loan through us regardless of receiving a PPP loan from a different lender in the previous round.
Please be advised that only eligible business may apply for a second draw loan. Each business is only entitled to one PPP second draw loan, and previous approval does not guarantee approval for a second draw loan.
Second Draw PPP Loans are generally subject to the same terms, conditions and requirements as First Draw PPP Loans. These terms include:
In addition to the businesses that were eligible in the initial round of PPP (including but not limited to small businesses, nonprofit organizations, veterans organizations, Tribal business concerns, small agricultural cooperatives that meet the SBA size standards, sole proprietors, self-employed individuals or independent contractors), during this round the program includes entities that are 501(c)(6)s, destination marketing organizations (DMOs), housing cooperatives, newspapers, broadcasters, and radio stations. Additionally, for first-time borrowers to qualify for eligibility, the entity may employ no more than 500 employees.
In order to be eligible for a loan, first-time businesses must have been in operation on February 15, 2020.
The absolute maximum cap on loans (both first-time applicants and second draw borrowers) for PPP is $2,000,000. In your application you will be requested to submit certain documentation as proof of eligibility that will determine the amount your business is eligible for under the program. Please be advised that borrowers are not guaranteed the full amount requested in their application.
In addition to the expenses that were eligible under the previous round (payroll, rent, covered mortgage interest and utilities), both first-time applicants and borrowers applying for a second draw may also use their PPP loan to cover the following expenses: covered operations (software, cloud computing, and other human resources and accounting needs); property damage costs due to public disturbances that occurred during 2020 that are not covered by insurance; covered supplier costs; and covered worker protection expenditures and personal protective equipment (PPE) to help a loan recipient comply with federal, state or local health guidance including requirements issued by the CDC, OSHA, HHS and state or local governments.
Eligible businesses that received a prior loan must:
Yes, seasonal employers are eligible for PPP loans. Seasonal employers are defined as businesses that do not operate for more than seven months in a calendar year or earned no more than one-third of their receipts in any six months in the prior calendar year.
As defined by section 315 of the Economic Aid Act, a borrower is a seasonal employer if it does not operate for more than 7 months in any calendar year or, during the preceding calendar year, it had gross receipts for any 6 months of that year that were not more than 33.33 percent of the gross receipts for the other 6 months of that year. Under section 336 of the Economic Aid Act, a seasonal employer must determine its maximum loan amount for purposes of the PPP by using the employer’s average total monthly payments for payroll for any 12-week period selected by the seasonal employer beginning February 15, 2019, and ending February 15, 2020.
No. If the applicant or the owner of the applicant is the debtor in a bankruptcy proceeding, either at the time it submits the application or at any time before the loan is disbursed, the applicant is ineligible to receive a PPP loan. If the applicant or the owner of the applicant becomes the debtor in a bankruptcy proceeding after submitting a PPP application but before the loan is disbursed, it is the applicant’s obligation to notify the lender and request cancellation of the application.
Failure by the applicant to do so will be regarded as a use of PPP funds for unauthorized purposes. The Borrower Application Form for PPP loans (SBA Form 2483), which reflects this restriction in the form of a borrower certification, is a loan program requirement. Lenders may rely on an applicant’s representation concerning the applicant’s or an owner of the applicant’s involvement in a bankruptcy proceeding.
In most cases, a borrower will be considered together with its affiliates for purposes of determining eligibility for the PPP. Under SBA rules, entities may be considered affiliates based on factors including but not limited to stock ownership, overlapping management, and identity of interest. See 13 CFR 121.301(f). The affiliation rules under 13 CFR 121.301(f) are waived with respect to eligibility for a Second Draw PPP Loan for: (i) any business concern with not more than 300 employees that, as of the date on which the covered loan is disbursed, is assigned a NAICS code beginning with 72; and (ii) (A) any business concern (including any station which broadcasts pursuant to a license 25 granted by the Federal Communications Commission under title III of the Communications Act of 1934 (47 U.S.C. 301 et seq.) without regard for whether such a station is a concern as defined in 13 C.F.R. § 121.105, or any successor thereto) that employs not more than 300 employees, per physical location of such business concern and is majority owned or controlled by a business concern that is assigned a NAICS code beginning with 511110 or 5151; or (B) any nonprofit organization that is assigned a NAICS code beginning with 5151.
This rule exempts otherwise qualified faith-based organizations from the SBA’s affiliation rules, including those set forth in 13 CFR part 121, where the application of the affiliation rules would substantially burden those organizations’ religious exercise. For the reasons described in 85 Fed. Reg. 20817, the SBA’s affiliation rules, including those set forth in 13 CFR part 121, do not apply to the relationship of any church, convention or association of churches, or other faith-based organization or entity to any other person, group, organization, or entity that is based on a sincere religious teaching or belief or otherwise constitutes a part of the exercise of religion. This includes any relationship to a parent or subsidiary and other applicable aspects of organizational structure or form. A faith-based organization seeking loans under this program may rely on a reasonable, good faith interpretation in determining whether its relationship to any other person, group, organization, or entity is exempt from the affiliation rules under this provision, and SBA will not assess, and will not require participating lenders to assess, the reasonableness of the faith-based organization’s determination.
Payroll costs consist of compensation to employees (whose principal place of residence is the United States) in the form of salary, wages, commissions, or similar compensation; cash tips or the equivalent (based on employer records of past tips or, in the absence of such records, a reasonable, good-faith employer estimate of such tips); payment for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payment for the provision of employee benefits consisting of group health care or group life, disability, vision, or dental insurance, including insurance premiums, and retirement; payment of state and local taxes assessed on compensation of employees; and for an independent contractor or sole proprietor, wages, commissions, income, or net earnings from self-employment, or similar compensation.
Yes. The Act expressly excludes the following:
If you submit to your lender a loan forgiveness application within 10 months after the end of your loan forgiveness covered period, you will not have to make any payments of principal or interest on your loan before the date on which SBA remits the loan forgiveness amount on your loan to your lender (or notifies your lender that no loan forgiveness is allowed).
Your “loan forgiveness covered period” is the period beginning on the date the lender disburses the PPP loan and ending on any date selected by the borrower that occurs during the period (i) beginning on the date that is 8 weeks after the date of disbursement and (ii) ending on the date that is 24 weeks after the date of disbursement. Your lender must notify you of remittance by SBA of the loan forgiveness amount (or notify you that SBA determined that no loan forgiveness is allowed) and the date your first payment is due. Interest continues to accrue during the deferment period.
If you do not submit to your lender a loan forgiveness application within 10 months after the end of your loan forgiveness covered period, you must begin paying principal and interest after that period. For example, if a borrower’s PPP loan is disbursed on January 25, 2021, the 24-week period ends on July 12, 2021. If the borrower does not submit a loan forgiveness application to its lender by May 12, 2022, the borrower must begin making payments on or after May 12, 2022.
If you use PPP funds for unauthorized purposes, SBA will direct you to repay those amounts. If you knowingly use the funds for unauthorized purposes, you will be subject to additional liability such as charges for fraud. If one of your shareholders, members, or partners uses PPP funds for unauthorized purposes, SBA will have recourse against the shareholder, member, or partner for the unauthorized use.
No. The lender must make a one-time, full disbursement of the PPP loan within ten calendar days of loan approval; for the purposes of this rule, a loan is considered approved when the loan is assigned a loan number by SBA. If the tenth calendar day is a Saturday, Sunday, or legal holiday, the period continues to run until the end of the next busines day. Notwithstanding this limitation, lenders are not responsible for delays in disbursement attributable to a borrower’s failure to timely provide required loan documentation, including a signed promissory note. Loans for which funds have not been disbursed because a borrower has not submitted required loan documentation within 20 calendar days of loan approval shall be cancelled by the lender. When disbursing loans, lenders must send any amount of loan proceeds designated for the refinance of an EIDL loan directly to SBA and not to the borrower.
The following businesses are NOT eligible to receive PPP loans:
Our Customer Support team is ready to help and can be reached at [email protected]. Please include your business name and EIN with your email inquiry so that we can help you faster, and please do not include any personal identifiable information in your message. Our hours are Monday through Friday from 9am to 5pm PST, and we will get back to you as quickly as possible.
Until the SBA will begin to accept applications for the Paycheck Protection Program (PPP) from all participating financial institutions, we’re giving you the chance to get a head start by using the link below to begin your application today before we’re able to submit to the SBA on Tuesday.
Once you complete the preliminary application, you will begin to receive notifications with program updates and useful information to help ensure that your application can be completed and submitted to the SBA.
Please note the information on this page as well as the required information in the preliminary application are subject to change pursuant to guidance published by the SBA. In addition, approval during a previous round of the Paycheck Protection Program does not guarantee approval during the next round of the Program. Eligibility and availability are determined on a case-by-case basis by Cross River Bank and subject to guidance published by the US Small Business Administration.
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