How much can I borrow for a Paycheck Protection Program loan?
April 16, 2020
In this 2-minute read:
- How much can my business borrow under the SBA’s Paycheck Protection Program?
- Additional PPP and small business resources during COVID-19
The federal government has allocated $2 trillion under the new CARES Act. This money is intended to help individuals, families, and businesses through the financial challenges of the COVID-19 pandemic.
The Paycheck Protection Program (PPP)—the part of the CARES Act that’s dedicated to the support of small businesses—allows qualifying businesses to apply for loans to help them get through the next couple of months.
Womply is acting as a facilitator to connect American small businesses to SBA-authorized lenders to get emergency loans for COVID-19 relief. Start your free application here, or call us at 855-208-8813 for a free consultation.
How much can my business borrow for a PPP loan?
The easiest way to find out how much your business can borrow for a PPP loan is by using our simple PPP loan calculator.
Just click the link above, and within seconds you’ll know approximately how much your business can borrow. It’s that simple!
What determines how much my business can borrow for a PPP loan?
The Small Business Administration (SBA) states that small businesses can borrow 2.5 times their average monthly payroll costs. However, that number cannot exceed $10 million, and employee salaries over $100K per year are capped at that amount when determining your payroll and for loan forgiveness.
This average is determined by your payroll costs over the past year and averaged out. For a deeper look at how this number is calculated, read our full article about how to calculate your average monthly payroll for PPP loans.
Independent contractors, self-employed individuals, and sole proprietors can also apply for PPP loans, but the treasury department has issued some additional clarifications and requirements for these loans, which you can learn about here.
In order to borrow this sum of money, you must also be able to certify in good faith that you will be using 75% or more of your loan to go towards maintaining your employee headcount and compensation levels, and keeping up with payroll expenses.
Read our complete PPP FAQs here.
Additional PPP resources
If you have more questions about PPP loans and how to navigate through the application process, check out these additional resources:
- Who can apply for the SBA grant or PPP loans? Is my business eligible?
- What if my bank isn’t an approved SBA lender? Where can I get my PPP loan?
- How long does it take to receive SBA / PPP loans?
- Do I have to pay back my PPP loan? Here’s how to get your loan forgiven
Need help applying for your PPP loan?
Womply is a verified agent working with SBA 7(a) approved lenders and can help your business through the application process for your PPP loan. Call us at 855-208-8813 for a free consultation or click here to start your free application now.
Learn more about Womply
Womply Product Overview - Reputation Management, CRM, Email Marketing for Small Business.