Would you like to read this 5 minute PPP Loan application blog post because this will save you time when applying for your SBA Paycheck Protection Program?
5 Minute PPP Loan Application for $22,997 at 1% with Kabbage — SBA Paycheck Protection Program!
You are about to see how in five minutes I applied for a nearly $23,000 loan at 1% interest as a part of the paycheck protection program or SBA PPP loan program as a part of the recent economic disaster relief funding stimulus package that was just passed.
I used Kabbage to apply for this loan and I will show you here the exact application process super fast. If you are self-employed, if you are an independent contractor, you can apply for this loan. If you've got a business with less than 500 employees, you can apply for this loan to cover payroll costs, mortgage interest, rent, utilities, and a few other expenses. There are no payments for six months.
That's the short version and if you want the longer version, I made a 20-minute video about this going through the FAQ and talking about all these individual points. We're here in this video just to do the application process to show you how quick it is.
Let's take a look. You go to Kabbage.com and click on their SBA loan right here. You'll see it looks like this: "Apply to the federal relief through the Paycheck Protection Program."
Then hit the "Apply now" button. I have had a Kabbage line of credit that I haven't used for years. I've been a customer of theirs for a while, which is why I trust them to handle this process. They're also one of the first companies that has pivoted and jumped on this right away, which is why I've submitted my application through them.
First, you need to do, once you click on "Apply now," you just answer a couple of questions and you'll see how much you're qualified for. You put in here which of these is appropriate. If you're a nonprofit, a veterans organization, tribal business and independent contractor, and eligible self-employed individual or none of the above.
I click on "Eligible self-employed individual." I put my income in using the numbers from last year's taxes, not the net profit, just the actual income, the gross revenue that I had. I also put in the number of employees. You need to put at least one for this to work. If you're self-employed, you just count yourself as an employee, from the way I understand it.
Numbers of employees can be up to 499, if you have more, you will not be able to apply for this. You also have to have had your business in by February 15, 2020. If you started your business after that, this will not work for you.
Here are the terms and conditions that you need to submit, that you are able to get this loan beforehand. If you've been delinquent or involved in bankruptcy with another federal department or agency, then you can't get this.
If you've not repaid your other SBA loans in the past seven years, you can't get this. If you are in management, or somebody else runs your business, that applies to everybody who's applying for this loan and if you've already applied for an Economic Injury Disaster loan, you can't apply for this. There are some extra terms and conditions that apply.
Once you put those things in, you'll get your loan eligibility information. This is a loan eligibility information. I got up to $23,000 rounded up slightly.
Now we go through and continue. It says, "What's the purpose of this loan?" I'm interested given I'm self-employed and I do make money off of my business most years. How does that work with the payroll? You just pay yourself what you're used to being paid.
I've got lots of other expenses that would be covered under this as well. You can even repay previous debt income obligations. I just checked "Payroll" for simplicity instead of checking all of them. You can also put in how much of your business you own. I have my business by myself which makes it super easy right here.
If you've got any of these following conditions, you also will not be eligible for this. If you have criminal history, especially you've been convicted of a felony or something like that's in progress, you may not be able to get this loan, and if somebody who owns more than 20% of the business has that, you may not be able to get the loan either.
You check these conditions and initial next to them. You also have to have the USA as your principal place of business, which means if your employees are based outside the USA, you cannot pay them. You also cannot pay independent contractors with this. The independent contractor needs to apply for it themselves instead, which is good news if you're an independent contractor, you don't have to go through your employer, you can directly do it yourself.
I get paid as an independent contractor by lots of different companies, which makes this clearly eligible for me. Now, you do need to check all of these boxes.
The business was in operation by February 15th. Now, you have current economic uncertainty that makes this loan request necessary to support the ongoing operations of the applicant. That seems like that should be given for all of us, this recent disaster provoked huge economic uncertainty across the entire world. I think about anyone with any kind of business could apply for this because of all the uncertainty that's coming up.
The funds will be used to retain workers and maintain payroll, which if I have my own business, I guess, does that mean I maintain myself or do I have to actually pay other people? I've got lots of other purposes I could use the funds for. That is interesting when it comes to paying yourself.
To get the loan forgiven, you will need to provide the documentation and to get it, you will need to provide the amount of full time equivalent employees. There's just me full-time equivalent employee, you will have to repay at least 20% of the loan, which cannot be forgiven because you can only cover eight weeks of expenses.
You understand the loan forgiveness will not be more than a 25% you have to use your income data from last year, so make sure you get your 2019 taxes done and you need to certify that everything you've provided is to the best of your information or you could face prosecution.
Once you do that, you will confirm your business data, your name, address, structure, date established, your personal details including your name, address, date of birth and social security number. I trust Kabbage with this, which is why I've shown you this information.
Here you are, put the rest of the information in, you will get this field. It says what you may be eligible for. This is what it says I'm eligible up to. That does not mean I will actually get that much. That's what it says I'm eligible up to and in order to move forward they needed two documents from me, one phone number verification. I needed to upload my phone bill and second I needed to upload my taxes from last year to show myself employed income.
I upload both of those and I'm ready to go. That's all this application takes. You can see I talked you through it, which made it take a bit longer than five minutes. However, you can do this application now that you've watched this tutorial, you can easily do this in five minutes.
I appreciate the chance to help you today. If you're new to my YouTube channel, I trust you hit that subscribe button for more amazing tutorials like this to build your business online, experience divine love, have success with digital marketing. All that is what I do and more.
I love you.
You're awesome.
I appreciate the chance to serve you and I'll see you in the next video.
Love,
Jerry Banfield
Edits from video transcript by Michel Gerard.
Posted from my blog with SteemPress : https://jerrybanfield.com/ppp-loan-application/