COVID-19 hit small businesses across the nation hard. Restaurants and retailers had to close their doors, and service-based companies and self-employed individuals lost clients and revenue as traditional credit lines tightened. It was a time of great uncertainty, but also a time of extraordinary common purpose – to help small businesses survive.
When the Paycheck Protection Program (PPP) was announced, QuickBooks® Capital was determined to build on their mission of helping small businesses access funding. QuickBooks Capital was one of the first fintechs to be approved as a non-bank SBA lender, and quickly built an automated PPP application process.
Since our first SBA loan in late April, QuickBooks Capital has facilitated more than $1 billion in SBA-approved PPP loans for our small business customers. As of June 24, we have supported more than 31,000 companies, keeping an estimated 186,000 employees on payroll at small businesses across the country.
These PPP loans are getting to the smallest of small businesses – those with less than 10 or even less than 5 employees, as well as self-employed individuals. As of June 12, the average loan size for eligible QuickBooks customers was $31,000, compared to the average SBA loan size of $112,000. The loan size for our self-employed customers averaged $7,000, and more than 80% of our requested PPP loans were for less than $60,000.
Facts about forgiveness
According to a recent CNBC/SurveyMonkey survey, 55% of small business owners did not apply for PPP loans, despite the current business challenges many are facing. Many didn’t apply due to the complexity of the PPP process – or fear that they wouldn’t be able to abide by the PPP rules for loan forgiveness.
We want to help small businesses understand how business decisions they make with regard to use of PPP funds can affect loan forgiveness. We also provide tools to help navigate complex calculations that help determine potential PPP loan forgiveness, taking into account more than just what percentage of the loan is spent on eligible payroll costs vs. non-payroll expenses. It’s important for customers to thoroughly understand forgiveness criteria, and review relevant information and documentation required by the SBA. Taking the right steps now can help prepare your small business for the PPP loan forgiveness application.
At QuickBooks, our goal has always been to simplify the complex parts of running a small business, so our customers can make the best decisions for their situation. In this moment, having the best tools and data to make decisions about running your small business is no longer just about achieving prosperity and growth – it’s about making the right decisions to survive and, once again, thrive.
Please refer to the latest guidance from SBA and Treasury to confirm current program rules and guidance. PPP funding is made available to businesses located in the United States. Given the large demand for additional authorized Paycheck Protection Program funds, not every qualified Paycheck Protection Program applicant will receive a loan.
QuickBooks Capital is licensed as Intuit Financing Inc. (NMLS # 1136148), a subsidiary of Intuit Inc. In California, loans are made or arranged under CFL Licensed #6054856. Intuit Financing Inc., (d/b/a QuickBooks Capital) is an authorized SBA Paycheck Protection.