The window to participate in the Paycheck Protection Program with Funding Circle is now closed. We at Funding Circle are proud to have helped thousands of US Small Businesses secure PPP loans due to the economic impact of the Coronavirus crisis.
IMPORTANT: in order to avoid delays in the processing of your application please connect your bank account via Plaid and submit all required documentation. This will complete your application packet and ensure a prompt review.
Benefits of an SBA-Backed Payment Protection Program Loan
100% Loan Forgiveness
Only 1% Interest
For qualified loan uses like payroll, mortgage interest, rent, and utilities.
All loans will have a flat 1% interest rate.
Loans from $10,000 – $2 million
No Collateral Needed
There are no collateral requirements or personal guarantees needed.
Funding Circle can provide loans from $10,000 up to $2 million.
What is the Paycheck Protection Program?
As a part of the $2.2 trillion federal stimulus package, the new Paycheck Protection Program provides small business loans with up to 100% forgiveness to help businesses impacted by COVID-19. The objective of this program is to help businesses retain their workforce and assist with operational expenses. These loans are meant to help small businesses cover employee salaries, total payroll support, rent, utilities, and other business related debt-obligations.
Is Your Small Business Eligible for the Program?
All businesses that were in operation before February 15, 2020 – including sole proprietorships, self–employed individuals, and independent contractors – with 500 or fewer employees can apply. Businesses in certain industries can have more than 500 employees if they meet applicable SBA employee-based size standards for those industries (click HERE for additional detail).
How is the loan amount determined?
Your loan amount will be 250% (or 2.5 times) your average monthly payroll, capped at $500,000. Your monthly payroll includes wages, tips, group health, retirement benefits, and taxes. For purposes of calculating "Average Monthly Payroll", most applicants will use the average monthly payroll for 2019, excluding costs over $100,000 on an annualized basis for each employee. For seasonal businesses, the Applicant may elect to instead use average monthly payroll for the time period between February 15, 2019 and June 30, 2019, excluding costs over $100,000 on an annualized basis for each employee. For new businesses, average monthly payroll may be calculated using the time period from January 1, 2020 to February 29, 2020, excluding costs over $100,000 on an annualized basis for each employee.
What information will I need to complete my application?
The current SBA application estimates the time to complete this application, including gathering data needed, is 8 minutes*. Funding Circle will need the following information in order to process a loan:
- Completed Paycheck Protection Application (we generate this form on your behalf)
- A copy of official identification (such as a driver’s license) for all 20%+ owners
- A voided check
For Corprate, LLC and Partnership entities:
- 2019 Business Tax Return, or 2018 Business Tax Return, or current capitalization table
- If using a 2018 Business Tax Return or current capitalization table we will also need one of the following:
- 2019 Q4 Tax Form 941 (Oct-Dec)
- 2020 Q1 Tax Form 941 (Jan-Mar)
- 2019 IRS Tax Form 944
- Statement from Payroll Service Provider for last 12 months
For Sole Propriterors:
- 2019 Schedule C
- Even if 2019 1040 has not been filed, need to complete 2019 Schedule C for the SBA application
- Note if you also pay W2 wages we will also need:
- Q1-Q4 2019 941s (or 944)
- Optional (may increase loan amount):
- Q1-Q4 2019 State unemployment tax filings
- Evidence of retirement contributions
- Evidence of health insurance contributions / premiums
Additional documentation for payroll verification may be required. We require payroll verification to determine eligibility and size of your loan. Your account manager will reach out to obtain this documentation.
* This list of documents was last updated April 02, 2020 and is subject to change based on SBA guidance.
We're in this together
Funding Circle remains focused on helping business owners drive their communities and the economy forward. We will continue to share the most updated relief information and COVID–19 related resources so that you may take advantage of all opportunities available.
- 250% of average monthly payroll
- Loan amounts from $10,000 – $2 Million
- Fixed 1% interest rate
- Maturity of 2 years
- First payment deferred for six months
- 100% guarantee by SBA
- No collateral or personal guarantees needed
- No lender fees or fees payable to SBA
Preliminary details for this program are found below (subject to change):
Paycheck Protection Program with Funding Circle
Available through Funding Circle, starting as early as Friday, April 10 (subject to government approval). The Paycheck Protection Program (PPP) serves as an extension of the Small Business Administration (SBA) 7(a) loan program, allowing eligible small businesses to apply for federally guaranteed, forgivable loans.
Our Paycheck Protection Program application process
Funding Circle understands this is an unprecedented situation, and will work with you all the way to continue our support of small businesses, like yours, to grow, create jobs, support your community, and drive the economy forward.
Complete your application
The SBA estimates that the time to complete this application, including gathering data needed, is 8 minutes.
Hear from us
Your dedicated Account Manager will contact you as soon as possible to review your documentation, complete your file and answer any questions you may have.
Get a decision
We’ll work on getting you a final quote after completing your file.
You get funded!
If approved, you’ll receive money in your bank account as soon as possible, once you accept your offer.
Frequently Asked Questions
What is the Paycheck Protection Program?
The Paycheck Protection Program is an SBA (Small Business Administration) 7(a) loan designed to help small businesses impacted by COVID-19 retain their workforce. For all small businesses, the Paycheck Protection Program has the following terms:
- Fixed interest rate of 1.00%
- No payments for the first 6 months
- 2-year term repayment
- Loan forgiveness of up to 100% of the principal amount
How do I apply for a payment protection program loan?
Businesses can apply for this SBA 7(a) loan through a qualified lender for the Paycheck Protection Program, including Funding Circle. Visit www.fundingcircle.com/us/apply to apply or call +1(855)385-5356 to have an Account Manager assist you with the process.
What is the application fee?
Funding Circle does not charge an application fee to apply to any of our business loans, including SBA 7(a) loans.
How is the loan amount determined?
Your loan amount will be 250% (or 2.5 times) your average monthly payroll. Your monthly payroll includes wages, tips, group health, retirement benefits, and taxes. For purposes of calculating “Average Monthly Payroll”, most applicants will use the average monthly payroll for 2019, excluding costs over $100,000 on an annualized basis for each employee. For seasonal businesses, the Applicant may elect to instead use average monthly payroll for the time period between February 15, 2019 and June 30, 2019, excluding costs over $100,000 on an annualized basis for each employee. For new businesses, average monthly payroll may be calculated using the time period from January 1, 2020 to February 29, 2020, excluding costs over $100,000 on an annualized basis for each employee. Note: At least 75% of funds must be used for payroll and the remaining amount (up to 25%) must be used for eligible expenses under the Final Rule.
Do I need collateral to qualify?
No. These loans are unsecured.
How long will it take to get my loan proceeds?
Once the SBA releases details and guidance on the Paycheck Protection Program, Funding Circle can approve your loan and disburse funds as fast as possible, often within one business day after loan approval, by ACH payment.
Are there limitations of how I can spend my paycheck protection program funds?
Yes. The approved uses of funds are:
- Rent payments
- Utility bills
- Employee salaries (including commissions and tips)
- Employee healthcare coverage
- Retirement benefits
- Vacation and paid leave (family, medical, etc.)
- Taxes addressed on compensation
- Interest payments (not principal payments) on mortgages or debt incurred before February 15th, 2020
What is my interest rate?
The interest rate for Paycheck Protection Program loans is 1.00% fixed.
If I take this loan now, can I get additional SBA funds in the future?
It is our understanding that it will not affect your future SBA loan runway or total dollars allowed from the SBA, but we are awaiting guidance from the SBA.
Does the paycheck protection program have loan forgiveness?
If the funds are used on approved use of funds, up to 100% of the principal amount of the loan can be forgiven. Borrowers must also maintain certain levels of employees and compensation in order to qualify for loan forgiveness.The SBA is still working to determine the exact details of the forgiveness program process, and we will share those details as soon as they are available.
If I do not qualify for loan forgiveness, what will my monthly payment be?
Monthly payments will depend on the amount borrowed and the loan term. Any amount not forgiven will have an interest rate of 1.0% fixed for the term set forth in your initial loan. No payments will be due until after the 6 month deferment period.
If I already have a loan with Funding Circle, can I use these funds to pay that loan?
Yes, customers can use the Paycheck Protection Program loan proceeds to pay interest with existing Funding Circle loans. However, any amount applied to non-mortgage debt or principal payments will not qualify for loan forgiveness.
I would like to speak with someone to better understand my options, where can I get help?
Funding Circle Account Managers are currently available and looking forward to answering all of your questions.
Can I apply for both an economic injury disaster loan and a loan through the payment protection program?
Yes. You are eligible to apply for the Paycheck Protection Program if you receive an Economic Injury Disaster Loan grant through the SBA. However, the amount forgiven under the Paycheck Protection Program will be decreased by the amount of EIDL grant you receive. You can apply for an EIDL HERE.
Paycheck Protection Loan Forgiveness FAQ
When do I need to apply for loan forgiveness?
No later than ten (10) days after the conclusion of the first eight weeks of your loan. For example, if your loan is funded on May 1, 2020, you must submit your forgiveness documentation no later than July 6, 2020.
Do I apply for forgiveness with the SBA or Funding Circle?
You will need to apply for forgiveness with Funding Circle.
How much of my loan is eligible for forgiveness?
Your PPP loan may be forgivable in part or entirely. The amount of loan forgiveness can be up to the full principal amount of the loan and any accrued interest. More details on eligibility requirements can be found below.
What determines the amount of loan forgiveness eligibility?
The calculation of the amount of PPP loan forgiveness you are eligible for, if any, is completely based on the use of proceeds of your PPP loan. Complete loan forgiveness requires that the entire loan was used for forgivable purposes, and that employee and compensation levels are maintained.
What qualifies as a forgivable purpose?
- Payroll costs over the eight-week period following the funding date of the loan.
- Interest payments on mortgage obligations dated before February 15, 2020 incurred over the eight-week period following the funding date of the loan.
- Rent payments for the business, on leases dated before February 15, 2020, incurred over the eight-week period following the funding date of the loan.
- Utility payments for the business, under service agreements dated before February 15, 2020, incurred over the eight-week period following the funding date of the loan.
What counts as payroll costs?
Payroll costs consist of compensation to employees whose principal place of residence is the United States and includes:
- Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee);
- Employee benefits including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit;
- State and local taxes assessed on compensation
Do I need to use my entire PPP loan towards pay-roll costs for it to be entirely forgiven?
The short answer is "No," but at least 75% of your PPP funds MUST have been used towards payroll costs to be considered for full forgiveness.
Can non-payroll costs be forgiven?
Yes, non-payroll costs may be eligible for loan forgiveness. Per the SBA, at this time no more than 25% of the loan forgiveness can be attributed to qualified, non payroll-related costs. If more than 25% of the funds are used for qualified, non payroll costs, then that portion of the loan may not be forgiven.
What if I used part of my PPP loan to refinance my EIDL loan? How much of this is eligible for loan forgiveness?
If you ended up using your EIDL loan funds for payroll costs, the amount of your EIDL loan that was financed by the funds of your PPP loan will be eligible for loan forgiveness. This amount will be categorized as a payroll cost. Any proceeds from any advance received on your EIDL loans, up to $10,000 will be deducted from the loan forgiveness amount on your PPP loan. This information is based on the latest guidance provided by the SBA.
How are full-time employee levels determined? What if I already cut salaries or let employees go?
To be eligible for the full amount of loan forgiveness, your full-time equivalent employee headcount cannot decline from your average monthly headcount. If your business launched in the second half of 2019, you may use average headcounts from January 1, 2020, to February 29, 2020. If your business is seasonal, you may use your monthly averages from February 15, 2019, or March 1, 2019, to June 30, 2019.
Please note: If you had to let employees go, you have until June 30, 2020 to restore your full-time employment and salary levels for any changes you may have made between February 15, 2020, and April 26, 2020.
What documentation do I need to provide to apply for loan forgiveness?
Documents and certificates. Proof of payroll (such as):
- Copies of checks
- Payroll records
- Excel records
- Rent statement(s)
- Utilities statement(s)
Please be aware that this list is subject to change. Funding Circle will be updating this list in accordance with further guidance from the SBA.
When will I know how much of my loan has been approved for loan forgiveness?
First, Funding Circle will confirm the amount of your loan. Then we will confirm the amount that is eligible for forgiveness within sixty (60) days after receiving a fully completed forgiveness application and all related supporting documentation.
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1 Funding Circle may partner with other lenders to provide a full range of loan options to qualified borrowers, loan amounts are subject to certain exclusions (including but not limited to state and/or entity type). Your lender will be disclosed in application or Promissory Note. Minimum loan amount set at $25,001 for DC, TN.
2 Eligibility requirements for loan forgiveness can be found at sba.gov
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