Paycheck Protection Program Loans

Paycheck Protection Program

Eligible Businesses

Term Lengths

Interest Rates

Forgiveness

Deferred Payments

Availability

Use

2 years

1.00%

Up to 100%*

6 months (though interest still accrues)

Through Jun 30, 2020

• Payroll and compensation• Insurance premiums and healthcare benefits• Mortgage interest costs• Rent and utilities• Interest on other debt obligations

Max Borrowing Amount

Small businesses with 500 or fewer employees, nonprofits, sole proprietors, and independent contractors

The lesser of: • $10 million OR • 2.5x average monthly payroll costs

The CARES Act provided nearly $350 billion towards the Paycheck Protection Program (PPP), a lending solution intended to keep as many employees on the payroll as possible. Employers who take advantage of PPP loans and apply them towards allowable costs—such as compensation, benefits, and other business obligations—can qualify for up to 100% loan forgiveness.

Forgiveness amounts may be reduced if your average number of employees changes or you cut compensation for employees who make under $100K by more than 25%. However, you won’t be penalized for reduction in employment or wages if you rehire employees or restore any decreases by Jun 30, 2020.

PPP loans are separate from existing federal loan programs, including Economic Injury Disaster Loans (EIDLs). You can apply to both PPP loans and EIDLs if your loan amounts cover different expenses—in other words, no double-dipping.

www.getdivvy.com* Forgiveness may be reduced dependent on reduction of number of employees or reduction in salaries.

www.getdivvy.com

How to apply for PPP loans

Apply here

Gather required information

Apply for a PPP loan directly through an SBA-approved lender or an online banking partner, like Divvy. Divvy has partnered with Cross River Bank, a technology-forward lender, to help small businesses get their PPP loans funded within 72 hours. With a 100% digital application, Divvy’s PPP assistance program is your client’s quickest and most streamlined way to get the financial lifeline they need.

Interested in becoming a Divvy partner?Divvy’s Partner Program is for accounting firms, CPAs, and bookkeepers whose clients could benefit from using Divvy. When your company becomes a partner, you earn revenue-sharing from the spending activity of any referral clients who create an account with us.

Go to getdivvy.com/partners

Payroll records

Copies of driver licenses

PPP calculator worksheet

Tax returns

Voided check

1099-Misc (if applicable)

6 months of bank statements

You will need payroll tax forms (i.e. Forms 940 and/or 941) from January 1, 2019 to the most current filing. Note: You will need to be able to identify any employees paid over $100K.

You’ll need to provide copies of driver licenses for business owners with ownership stakes of 20% or more.

here

Cross River Bank has provided a Paycheck Protection Program calculator worksheet that will help you determine your loan amount. This document is required and can be downloaded .

Gather your tax returns and financial statements for the last two years. If you haven’t been in business that long, all tax returns you have.

Provide a voided check from the account where the loan will be deposited.

If you have filed form 1099-Misc and are counting contractor compensation as part of your average payroll, you will need to provide this form.

Provide bank statements from your business accounts for the most recent six months of business.