Paycheck Protection Program (PPP)

Government Funded Coronavirus relief for small businesses and independent contractors

  • Provides loans which will be forgiven (need not be paid back) if funds used for eligible expenses.
  • Forgiven loans are not taxed.
  • All fees are paid for by the Federal Government via the SBA.
  • No credit check.  No collateral or personal guarantees.

Am I Eligible?

  • Business must have been operating before February 15th, 2019.
  • Business Types:
    • Businesses without Employee –   Sole proprietors, independent contractors (1099), and self-employed persons
    • Businesses with Employees – of any type, that meets SBA’s size limits below.
    • Non-Profit Organizations –  501(c)(3) non-profit organization, 501(c)(19) veterans organization, or Tribal business concerns
  • Size Limit:
Most BusinessesRestaurants and Lodging Industry
(NAICS* Classification Code begins with 72)
First PPP Loan500 Employees500 Employees per Location
Second PPP Loan300 Employees300 Employees per Location
  • Revenue Drop – This only applies to Second PPP Loan:
    • Must show a 25% drop in gross receipts in at least one quarter in 2020 compared to the same quarter in 2019. 

How Much can I borrow?

Businesses with Employees

  • Most Business are eligible for up to 2.5 times their Average Monthly Payroll Cost in 2019.
  • Restaurants and Lodging (NAICS Code starting with 72) are eligible for up to 3.5 times
    • Payroll Costs include:  wages, tips, insurance benefits, retirement contributions, state and local taxes, including unemployment insurance tax.
  • Maximum Loan Amount
    • First PPP Loan is $10M
    • Second PPP Draw is $2M
    • First Draw plus Second Draw can not exceed $10M

Businesses without Employees

  • Businesses without Employees are eligible for up to 2.5 times their Average Monthly 2019 Net-Profit
    • Net-Profit is as reported on your 2019 IRS Form 1040 Schedule C – line 31
    • Maximum PPP Loan Amount = $20,833.

How Do I Apply?

Step 1:

Complete Online Application and E-Sign

Step 2:

Upload Requested Documents

Businesses with Employees (typically):
2019 Business Tax Return
2019 IRS Form 940
Q1/2020 IRS Form 941 
Payroll summary reports
Evidence of payroll taxes, insurance premiums and benefits paid

Businesses without Employees (typically)
2019 Business Tax Return or 1040 Schedule C
 

Step 3:

E-Sign PPP Loan Agreement

Step 4:

Receive Funds electronically into your bank account

How do I get my PPP Loan Forgiven?

  • Businesses with Employees –  Borrower demonstrates:
    • 60% or more of the funds spent on payroll, inclusive of Benefits and Taxes.
    • The balance can be spent on Rent or Mortgage Interest, Utilities, Personal Protection Equipment, and Supplies.
  • Businesses without Employees –  Borrower demonstrates:
    • Spends fund on Payroll, Rent or Mortgage Interest, Utilities, Personal Protection Equipment, and Supplies, during the covered period.
    • The borrower could also claim the automatic owner compensation replacement, equal to 2.5 months of 2019 or 2020 net profit.  This is an amount comparable to the allowable loan amount.
  • Forgiveness Process & Timing
    • Online application.
    • You can apply for forgiveness anytime after the funds are spent, up to the point that the loan matures. 
    • We recommend that you apply for forgiveness before loan payments are due to otherwise begin (~15 months after disbursement).

Visit SBA.GOV for in-depth information on restrictions and requirements.

By clicking you are being redirected to our Trusted Partner, Adesso Capital, to begin your application with an SBA-Certified Bank.

At this time, Plaata is partnering with Adesso Capital and its SBA partners to help customers find a lender (“Lender”) participating in the Paycheck Protection Program (“Program”). Loan applications are submitted to the Lender and the loan agreements will identify the Lender to small businesses at signing. Program funds are limited. Plaata does not guarantee that applications will be processed and submitted before Program funding is no longer available. There is no cost to you to apply for a Program loan. Program information can change according to government policy.