Is a Paycheck Protection Loan (PPP) right for me?




The new round of the Paycheck Protection Program, administered by the SBA, makes continued financial support available to help eligible gig workers, self-employed, and small businesses access the funds they need to continue working safely during the COVID-19 pandemic.1

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Paycheck Protection Program (PPP) Loans

The allowable uses of funds for this program have been expanded to assist small businesses —including sole proprietors, independent contractors, self-employed, and gig workers— in covering even more of their unexpected costs as a result of the pandemic. Whether this is your first or second PPP loan, SmartBiz can help!


What can PPP loan funds be used for?


  • Payroll costs or individual salaries
  • Insurance benefits
  • Employee salaries and/or commissions
  • Rent payments and/or mortgage payments
  • Utilities
  • Software or cloud computing costs for business operationsNEW
  • Costs related to property damage and vandalism or looting due to public disturbances not covered by insurance or other compensationNEW
  • Costs of the supply of goods that are essential to business operationsNEW
  • Covered worker protection expenditures that help adapt business activities to COVID safety requirementsNEW

Who is it best for?

Businesses with less than 500 employees that are negatively impacted by the pandemic and are applying for their first PPP loan. Previous PPP loan recipients with business less than 300 employees can also qualify if they have more than a 25% drop in revenue quarter over quarter from the previous year. If you are applying for your second PPP loan, you will need to have used the full amount of funds from your first PPP loan before your second is disbursed.

If you are self-employed, independent contractor, gig worker, or sole proprietor, you are required to have been operational as of February 15, 2020. If you started your business after that date, you will not be eligible for this program.


How much can I borrow?

Eligible businesses can apply for as little as $100 or as much as $2 million. Our streamlined application will even help you calculate the allowable loan amount for your business based on your payroll information.


What are the loan terms?

PPP loans are 100% federally guaranteed and have a low interest rate of 1.00% and a term of 2 years. There is no collateral required and no repayment necessary for the first 10 months.


What documents do I need to provide?

To apply for a PPP loan, you’ll need to submit your business and personal tax returns, business bank statements, and payroll history report. If you use a payroll reporting service like ADP or Gusto, you can download their PPP reports. Also, you can easily and securely link your payroll provider account directly to your PPP Loan application.

For self-employed, independent contractors, gig workers or sole proprietors, you’ll need to provide Form 1040 Schedule C for either 2019 or 2020, bank account information, and a driver’s license or passport number. If this is your first PPP loan, you can provide a bank statement or invoice/receipt showing business operations as of February 15, 2020.


What about loan forgiveness?

Eligible PPP loans can be forgivable (meaning you don’t need to pay them back) if proceeds are used as designated by the SBA guidelines. When you’re ready to apply for loan forgiveness, you can apply with the bank that funded your PPP loan application.