Payroll Protection Program for Large Companies

If you’re a small business owner, your top priority is making sure you meet the payroll each and every week. With our Payroll Protection Program for Small Business , there are no premium increases, no claim forms to fill out, and no claims adjusters to call (unless you have a claim). If a covered claim occurs, Permutation pays 100% of premiums so you never have a lapse in coverage.

Some community lending institutions are still accepting applications from minority-owned and women-owned businesses and businesses in underserved communities to continue to disseminate funding earmarked for that purpose. For more on stimulus aid still available, see our main story here.

One of the biggest ways the federal government has attempted to aid small businesses during the coronavirus pandemic was the creation of the Paycheck Protection Program (PPP), which helps businesses secure forgivable loans and keep workers employed. The original $349 billion in funding for PPP, which was allocated by Congress as part of the CARES Act, ran out of money but $320 billion in new funding was approved in April.

While traditional banks were originally the only lenders offering access to PPP loans to small businesses, fintech (financial technology) companies have now also been approved by the Small Business Administration (SBA) to accept applications and facilitate loans. These fintech companies have a role to play by helping small businesses that may not have an established lending relationship with a large bank, community bank or credit union.

Here are eight innovative fintech companies now offering PPP loans to small businesses, as well as several fintech firms that can help you apply for PPP loans.

BlueVine

BlueVine, an online lender that has processed more than $3 billion in loans since its founding in 2013, has begun accepting PPP applications. On top of a swift application process, BlueVine says it has “experienced advisors” on hand to answer questions and help with the application.

Credibly

Since its founding in 2010, Credibly has issued more than $1 billion in loans to small and medium-sized businesses around the United States. Credibly claims it has simplified the process and only takes “minutes” to apply for a PPP loan application using its platform. It also said it has facilitated more than $500 million in PPP loans to date.

Funding Circle

Funding Circle, one of the largest online lenders, has provided more than $11 billion in loans to 81,000 businesses worldwide since its founding. The company is now accepting PPP loan applications and helping provide those loans to small businesses, adding to its already large portfolio. It has also created an easy-to-digest PPP guide that includes a calculator and walk-through of the process.

Intuit QuickBooks

Intuit QuickBooks, which is best known for its ubiquitous accounting and payroll software, is accepting PPP loan applications for current customers. Small businesses that are either Payroll customers or QuickBooks Self-Employed customers who filed 2019 taxes with TurboTax Self-Employed can apply and receive a PPP loan from QuickBooks Capital.

PayPal, one of the largest fintech firms in the world, was one of the first companies of its kind to offer access to PPP loans.

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OnDeck

OnDeck, the largest U.S.-based online small business lender, has issued more than $13 billion in loans to over 100,000 since its founding in 2017. The company has recently begun accepting applications for the PPP loan program. The company also created a COVID-19 hub, which includes information on PPP loans, EIDL loans, local and state assistance options, and other resources for navigating the coronavirus pandemic.

PayPal

PayPal, one of the largest fintech firms in the world, was one of the first companies of its kind to offer access to PPP loans. The company’s initiative has been primarily set up to help current PayPal merchants, but non-merchants can also apply through their portal.

Ready Capital

Ready Capital, a real estate and small business lender that has issued more than $3 billion in loans in the U.S., is yet another large player helping small businesses with PPP loans. As of this writing, the company is backlogged with PPP applications, but it may take new applications soon.

Square

Square, which has been providing various payment and business tools to small businesses for years, was an early fintech company to begin offering access to PPP loans. However, the company is focused primarily on helping Square sellers first with PPP loan applications before accepting non-sellers later.

Other fintech companies helping businesses with PPP applications

On a final note, a handful of fintech companies are assisting with the preparation of PPP applications and then sending those applications to partner banks that are SBA-approved. These fintech companies may be worth checking out if any of the above lenders are unable to help or are overloaded with requests:

Paycheck Protection Program

The Paycheck Protection Program is providing small businesses with the resources they need to maintain their payroll, hire back employees who may have been laid off, and cover applicable overhead.

SMALL BUSINESS PAYCHECK PROTECTION PROGRAM

The Paycheck Protection Program established by the CARES Act, is implemented by the Small Business Administration with support from the Department of the Treasury.  This program provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.

The Paycheck Protection Program prioritizes millions of Americans employed by small businesses by authorizing up to $659 billion toward job retention and certain other expenses.

Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.

For Borrowers

For Lenders


Program Rules

Previous Versions of Applications

ECONOMIC INJURY DISASTER LOANS

In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available following a successful application. This loan advance will not have to be repaid. If a business received an Economic Injury Disaster Loan advance in addition to a Paycheck Protection Program (PPP) loan, the amount of the Economic Injury Disaster Loan advance will be deducted from the PPP loan forgiveness amount by SBA.

The SBA’s Economic Injury Disaster Loan provides vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing as a result of the COVID-19 pandemic. 

This program is for any small business with fewer than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by COVID-19.

Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries.

The Economic Injury Disaster Loan advance funds will be made available within days of a successful application, and this loan advance will not have to be repaid. 

Conclusion

Protecting your business from payroll fraud is imperative to its longevity. You know it, I know it — and the Internal Revenue Service knows it too. That’s why they’re cracking down on businesses that don’t conform with the Employee Benefit Protection Act (EBPA). Listen, you can do all the right things when it comes to payroll: put together a formal policy and procedure document, carefully review the company’s W-2s before preparing checks, make sure that everyone has been properly classified. But in reality, you’re only as good as your trusted employees. This is exactly why any small businesses that I work with make sure they’re covered by the Payroll Protection Program for Small Business .

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