The Paycheck Protection Program (PPP) is rapidly changing. For the most up-to-date information, visit the websites of the Small Business Administration (SBA) and the U.S. Department of Treasury. In the meantime, here are four things you can do if PPP funding is unavailable.
1. Complete your application with QuickBooks Capital
Even though the SBA has stopped accepting PPP applications, we recommend that you complete your PPP loan application now within QuickBooks Capital. If and when we are able, we will submit your application to the Small Business Administration. Given the demand for any such additional funds and our funding capacity, not every qualified PPP applicant will receive a loan.
As unfortunate as this reality is, applying just in case may prove beneficial if yours is among the PPP loans that are funded.
To recap, PPP loans are designed to help small business owners cover their payroll costs and certain operating expenses. Loans can be used on other expenses as well. For instance, mortgage interest payments, rent payments, and utility payments may be eligible, provided those were all set up before February 15, 2020.
Recipients of a PPP loan may also apply for loan forgiveness from their lender after the eight-week period following disbursement of their loan. The amount of loan forgiveness, if any, will depend on a variety of factors, such as how the loan was spent and certain employment and wage criteria.
2. Visit Intuit Aid Assist to apply for the EIDL
Intuit Aid Assist is a free service designed to help U.S.-based businesses, self-employed, contractors, freelancers, and gig workers navigate business federal relief programs. Small business owners can use the site to see if they qualify for an Economic Injury Disaster Loan (EIDL), if not the PPP. Select “Check your eligibility” and complete the brief questionnaire to see if you’re eligible for a loan.
EIDLs provide small businesses with working capital loans up to $2 million to pay fixed debts, payroll, accounts payable, and other bills that business owners can’t pay due to the economic impact of the coronavirus. The EIDL interest rate is currently 3.75% for small businesses with long-term repayment plans up to 30 years.
It’s important to know that small business owners can apply for both an EIDL and a PPP loan and then decide which one to choose. However, the SBA limits these loans to one per business. You cannot get both at the same time.
3. Consider other relief options
If you haven’t yet considered loan options beyond the Paycheck Protection Program, now is the time. Here are four to think about:
- The Economic Injury Disaster Loan emergency advance offers eligible businesses and organizations a loan advance of up to $10,000 to help overcome temporary revenue loss they are experiencing as a result of the COVID-19 pandemic. This may help tide a business over until it can receive more robust funding from an Economic Injury Disaster Loan.
- The Express Bridge Loan Pilot Program offers a loan of up to $25,000 to small businesses that have a current business relationship with an SBA Express Lender.
- The SBA’s debt relief efforts automatically pay the principal, interest, and fees on current 7(a), 504, and microloans for six months. The SBA will also automatically pay the principal, interest, and fees of new 7(a), 504, and microloans issued prior to September 27, 2020.
- Another funding option is crowdfunding through platforms like GoFundMe. Intuit has pledged funds to the Small Business Relief Initiative, which provides microgrants for small businesses that create a GoFundMe page through the initiative. Learn how your business can create a fundraiser for free, and promote it within your community.
4. Talk to an accountant or lawyer about next steps
If funds are at a standstill, it might be a good time to get advice from your accountant or attorney. Next steps are best determined on a case-by-case basis.
Here are some questions you might want to ask, based on your business and current situation:
- Should I apply for the Employee Retention Credit instead of the PPP?
- Should I bring my employees back right now if I laid them off? Back from unemployment?
- What other loan options might I be eligible for? For example, short-term loans.
- If I do receive a PPP loan, how do I track my expenses so I can get some or all of it forgiven?
- What other options do I have, based on my current finances?
As you wait to see whether more PPP loan funding becomes available, know there are other options worth exploring. And don’t forget to lean on business professionals you trust for creative solutions to similar problems.
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.
Minimum loan amount varies by state.
Intuit Financing Inc. is a licensed lender in states that require a license. Our service is limited to commercial or business loans only. State licenses include: AK #10000990, CA #6054856, DC #ML1136148, FL #CF9901279, MD #03-2339, MN #MN-RL-1136148, NM #1899, ND #MB102690, RI #20183584SL, RI #20183583LL, SD #MYL.3279, TN #166418, VT #7194 and VT #7195.
Intuit Financing Inc., (d/b/a QuickBooks Capital) is an authorized SBA Paycheck Protection Program Lender.
Loan and forgiveness calculations and eligibility may vary. Refer to the SBA.gov for information about your particular situation.
Coronavirus relief programs are evolving regularly. Please visit SBA.gov or https://home.treasury.gov/policy-issues/top-priorities/cares-act/assistance-for-small-businesses for the most up to date information.
The funding described is made available to businesses located in the United States of America and are not available in other locations.
This content is for information purposes only and should not be considered legal, accounting or tax advice, or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Intuit Inc. does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. Intuit Inc. does not warrant that the material contained herein will continue to be accurate, nor that it is completely free of errors when published. Readers should verify statements before relying on them.