How the Paycheck Protection Program Loan Can Support Your Business During COVID-19
By Will Price
As of 12/21/20, another round of funding has been approved for PPP loans, and you can complete an application through Lendio to be submitted to the SBA. An application submitted to Lendio does not guarantee you will receive a PPP loan.
The ongoing financial impacts of COVID-19 have been felt by small businesses around the world, from reduction in workforce and shuttering doors, to completely revamped methods of doing business in an extended time of uncertainty.
To support affected businesses, Mindbody has partnered with Lendio to assist our customers through another round of the Paycheck Protection Program.
What is the Paycheck Protection Program?
The Paycheck Protection Program provides federally guaranteed loans to small businesses that qualify. Originally added as an SBA loan, these funds are calculated based on payroll or revenue (more on that in the next section), may be forgivable, and are intended to help small businesses retain employees throughout and after the coronavirus (COVID-19) crisis.
With this second round of PPP, there are a few additional qualifications. These additions apply only to businesses that received funds during the first round of the program.
If you received funds from the first round of PPP:
To be eligible for a second draw your business must have less than 300 employees and demonstrate a 25% gross revenue decline when compared to the same quarters in 2019.
If you did not receive funds from the first round of PPP:
Your business is eligible if you have 500 or fewer employees whose primary residence is in the United States.
Using the funds
Funds can be used for costs such as insurance premiums and group healthcare benefits during paid sick, family, or medical leave, mortgage interest payments (but not prepayment or payment of mortgage principal), commercial space rent and utilities, and more.
How to apply for the loan
Applying for this loan is easy, and you only need a few key documents and pieces of information to see if your business qualifies:
- The date you started your business
- Documentation verifying average monthly payroll costs
- Documentation showing a 25% gross revenue decline from comparable quarters in 2019 and 2020 (only if applying for your second draw of PPP)
To see if you qualify for the SBA-Backed Paycheck Protection Program Loan, and benefit from low-interest rates, loan forgiveness, six-month deferred payments, and a two-year loan term, please visit the Paycheck Protection Program Loan page and get started today.
We're all in this together.