Lendver and Funding Circle partner to help small business access Paycheck Protection Program loans

First draw and second draw PPP loans now available. Funds are limited and will be disbursed on a first come, first served basis.¹

By clicking Apply now you consent to Funding Circle sharing your contact information with Lendver

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 a Payment Protection Program Loan

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100% Loan Forgiveness

Only 1% Interest

For qualified loan uses like payroll, mortgage interest, rent, utilities, and more.

All loans will have a non-compounding and non-adjustable 1% interest rate.

Loans from $5,000 – $2 million

No Collateral Needed

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There are no collateral requirements or personal guarantees needed.

Funding Circle can provide loans from $5,000 up to $2 million.

What is the Paycheck Protection Program?

As a part of the CARES Act and Consolidated Appropriations Act, 2021, the 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.


The Paycheck Protection Program has the following terms:

  • Fixed interest rate of 1.00%
  • Can elect a covered period between 8 and 24 weeks after origination until March 31, 2021
  • Payment deferral:
  • No payments until the SBA pays the lender for the forgiven portion⁵ or
  • No payments for the first 10 months after the covered period if the borrower fails to apply for forgiveness by the end of that time period
  • 5-year term repayment loans made on or after June 5, 2020
  • Loan forgiveness of up to 100% of the principal amount

Is Your Small Business Eligible for the Program?

For a first PPP loan: All businesses that were in operation on or before February 15, 2020 – including sole proprietorships, self–employed individuals, and independent contractors – with 500 or fewer employees and have not received a grant under section 24 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act can apply for a first PPP loan.


For second PPP loan: All businesses that were in operation on February 15, 2020 – including sole proprietorships, self–employed individuals, and independent contractors – with 300 or fewer employees, have not received a grant under section 24 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, have used or will use the full amount of their first PPP loan and can demonstrate a 25% reduction in gross receipts from any of the four quarters of 2020 compared to the same quarter in 2019 can apply for a second PPP loan.⁴

I have determined I am eligible. What is the maximum loan amount?

For a first draw PPP loan, the maximum loan amount will be 250% (or 2.5 times) your average monthly payroll costs for 2019 or 2020 or for a 1-year period before the date on which the loan is made.


For a second draw PPP loan, the maximum loan amount will be 250% (or 2.5 times) your monthly average payroll costs for most industries. If your business is in food services or accommodations, the maximum loan amount will be 350% (or 3.5 times) your monthly average payroll.

What is the required documentation needed to complete my package?

The required documentation for your Paycheck Protection Program application can vary by your entity’s filing status, if you’re applying for a First Draw PPP Loan or a Second Draw PPP Loan, and if you have employees. We will go over the different document requirements in the questions below.


In general, all applications will require the following documents:

  • A copy of an official ID document, such as a driver’s license, for all business owners who own 20% or more.
  • Bank account verification by connecting via Plaid (more details on Plaid in the question below) or through providing a voided check.

I filed a Schedule C in 2019 and I don't have employees

If you filed a Schedule C in 2019 and do not have any employees (other than yourself), you will need to upload the following documents:

  • 2019 1040 Schedule C
  • One 2019 business bank statement and February 2020 business bank statement

I filed a Schedule C in 2019 and I have employees

If you filed a schedule C in 2019 and do have employees (other than yourself), you can expect to upload the following documents:

  • 2019 1040 Schedule C
  • 2019 Form 941s for all four quarters
  • Q1 2020 Form 941 or February 2020 bank statement showing payroll debit(s) or a payroll statement covering February 15, 2020

If you have a 2019 full year comprehensive payroll report from payroll processor/PEO, you may submit that instead of submitting the Schedule C and the 941s

I filed a Form 1120/1120s or Form 1065 in 2019

If you filed a Form 1120/1120s or a Form 1065 (you’re likely a Partnership or Corporation), you can expect to upload the following documents:

  • 2019 Business Tax Return (including K-1s if you filed a 1065)
  • 2019 Form 941s for all four quarters (if you have employees)
  • Q1 2020 Form 941 or February 2020 bank statement showing payroll debit(s) or a payroll statement covering February 15, 2020

If you have a 2019 full year comprehensive payroll report from payroll processor/PEO, you may submit that instead of submitting the first two requirements (2019 Business Tax Return and the 941s)

I am applying for my Second Draw PPP loan

If you’re applying for your Second Draw PPP loan, you will be required to fill out a Proof of Revenue Reduction form as a part of our online application to demonstrate at least a 25 percent reduction in gross receipts in the first, second, or third quarter of 2020 relative to the same 2019 quarter.⁴


To prepare for this part of the application, you can review your business’s income statements (also called Profit and Loss statements) for 2019 and 2020. You can generate an income statement through any bookkeeping service you use to track your business's finances or request one from your bookkeeper.


We will ask for your quarterly Revenue and Expenses, and you will need to demonstrate a 25% or more reduction in revenue over one quarter in 2019 compared to the corresponding quarter in 2020. You only need to input numbers for one pair of quarters and do not need to input numbers for the rest of the quarters.

Why should I use Plaid to verify my bank account information?

Linking your bank account to your Funding Circle application is the fastest and most convenient way to provide verification of your bank account information. Linking your bank account helps to ensure that, if your loan application is approved, funds can be sent to you as quickly as possible.


Funding Circle understands the importance of keeping your financial information safe and secure. That is why we have partnered with Plaid. Plaid is used by many major banks and credit unions, such as American Express, and financial apps, such as Venmo. With Plaid:

  • Your data is encrypted using a combination of the Advanced Encryption Standard (AES 256) and Transport Layer Security, which helps keep your sensitive data secure and protected.
  • Funding Circle only has access to view your account information, such as the account owner’s name, account number and routing number.
  • Funding Circle never has access to your login credentials.

If your bank does not participate with Plaid or if you would prefer to provide a voided check instead, you may verify your bank account information by providing us with a voided check that shows the business name, account number and routing number.

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.

Paycheck Protection Program with Funding Circle

Program Details:

  • 250% of average monthly payroll (350% for second draw only if restaurant or accommodations)
  • Loan amounts from $5,000 – $2 Million
  • Fixed 1% interest rate
  • Maturity of 5 years for loans
  • Payment deferral possible
  • 100% guarantee by SBA
  • No collateral or personal guarantees needed

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.

By clicking Apply now you consent to Funding Circle sharing your contact information with Lendver

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.

1

Complete your application

The SBA estimates that the time to complete this application, including gathering data needed, is 8 minutes.

2

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.

3

Get a decision

We’ll work on determining the amount of PPP funding that your business may qualify for 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.

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Frequently Asked Questions

What is the application fee?

Funding Circle does not charge an application fee to apply for a Paycheck Protection Program loan.

Do I need collateral to qualify?

No. Paycheck Protection Program 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:


Payroll costs such as:

  • Employee salaries (including commissions and tips)
  • Employee healthcare coverage (including group life, disability, vision, or dental insurance)
  • Retirement benefits
  • Vacation and paid leave (family, medical, etc.)
  • Taxes addressed on compensation

Non-payroll costs such as:

  • Rent payments
  • Utility bills
  • Interest payments (not principal payments) on mortgages or debt incurred before February 15th, 2021
  • Covered operations expenditures: Payment for any software, cloud computing, and other human resources and accounting needs.
  • Covered property damage costs: Costs related to property damage due to public disturbances that occurred during 2020 that are not covered by insurance.
  • Covered supplier costs: Expenditures to a supplier pursuant to a contract, purchase order, or order for goods in effect prior to taking out the loan that are essential to the recipient’s operations at the time at which the expenditure was made. Supplier costs of perishable goods can be made before or during the life of the loan.
  • Covered worker protection expenditure: Personal protective equipment and adaptive investments to help a loan recipient comply with federal health and safety guidelines or any equivalent State and local guidance related to COVID-19 during the period between March 1, 2020, and the end of the national emergency declaration.

What is my interest rate?

The interest rate for Paycheck Protection Program loans is 1.00% fixed. The interest rate will apply to any portion of your loan amount that is not forgiven by the SBA.

If I take this loan now, can I get additional SBA funds in the future?

You are eligible to apply for other SBA products such as 7(a) loans and Emergency Injury Disaster Loan (EIDL). However, if you are a an eligible person or entity (as defined under section 24 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act) that receives a grant under such section 24, you are not eligible for a PPP loan or if you take a PPP loan, you are not eligible for the section 24 grant.

Does the paycheck protection program have loan forgiveness?

If the funds are used on approved use of funds, the SBA may approve for up to 100% of the principal amount of the loan to be forgiven. In order to be eligible for a fully forgiven loan, no more than 40% of the loan forgiveness amount can be attributed to non-payroll forgivable costs. Borrowers must also maintain certain levels of employees and compensation in order to qualify for loan forgiveness. Please visit the loan forgiveness FAQ for details.

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 1.00% fixed for the term set forth in your initial loan agreement. If you fail to apply for forgiveness, no payments will be due until 10 months after the end of your covered 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.

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.


Additional Information

For more information about SBA loan programs, please visit the Small Business Administration website.

To get on the advanced application list for the Paycheck Protection Plan (PPP), please visit fundingcircle.com/us/apply. Funding Circle will start processing these applications (subject to SBA approval, Funding Circle and our partners will start processing these applications).

Paycheck Protection Loan Forgiveness FAQ

Updated 01/11/2020


Once you’ve received your Payment Protection Program (PPP) loan, you’ll need to use the funds for specific expenses and meet the requirements to have your loan forgiven. While new laws and regulations may impact the process and requirements, we’ve answered some of the most common questions based on the latest guidance. Please note that these answers are subject to change based on further guidance and in particular, SBA guidance.

Do I apply for forgiveness with the SBA or Funding Circle?

You will need to apply for forgiveness with the lender that issued your loan. In this case, Funding Circle. Look for emails from us with reminders and further instructions about forgiveness.

When can I apply for loan forgiveness?

You can apply for loan forgiveness after the end of your “covered period.” Your covered period is the time (described in more detail in the next question and answer) during which the money you spend on eligible expenses may be forgiven—any amount remaining after the end of your covered period won’t be forgivable.

What is the covered period?

You may elect a covered period ending at the point of your choosing between 8 and 24 weeks after origination until March 31, 2021.

Can my PPP loan be forgiven in whole or in part?

Yes. The amount of loan forgiveness can be up to the full principal amount of the loan and any accrued interest. An eligible borrower will not be responsible for any loan payment if the borrower uses all of the loan proceeds for forgivable purposes and employee and compensation levels are maintained or, if not, an applicable safe harbor or exemption applies. The actual amount of loan forgiveness will depend, in part, on the total amount of payroll costs (including employer contributions for group health, life, disability, vision and dental insurance), payments of interest on mortgage obligations incurred before February 15, 2020, rent payments on leases dated before February 15, 2020, utility payments for service that began before February 15, 2020, covered operations expenditures, covered property damage costs, covered supplier costs, and covered worker protection expenditures over the loan forgiveness covered period. Payroll costs that are qualified wages taken into account in determining the Employe Retention Credit are not eligible for loan forgiveness.


The “loan forgiveness covered period” is the period beginning on the date the lender disburses the PPP loan and ending on any date selected by the borrower that occurs during the period (i) beginning on the date that is 8 weeks after the date of disbursement and (ii) ending on the date that is 24 weeks after the date of disbursement.


To receive full loan forgiveness, a borrower must use at least 60 percent of the PPP loan for payroll costs, and not more than 40 percent of the loan forgiveness amount may be attributable to non payroll costs. For example, if a borrower uses 59 percent of its PPP loan for payroll costs, it will not receive the full amount of loan forgiveness it might otherwise be eligible to receive. Instead, the borrower will receive partial loan forgiveness, based on the requirement that 60 percent of the forgiveness amount must be attributable to payroll costs. For example, if a borrower receives a $100,000 PPP loan, and during the covered period the borrower spends $54,000 (or 54 percent) of its loan on payroll costs, then because the borrower used less than 60 percent of its loan on payroll costs, the maximum amount of loan forgiveness the borrower may receive is $90,000 (with $54,000 in payroll costs constituting 60 percent of the forgiveness amount and $36,000 in non payroll costs constituting 40 percent of the forgiveness amount). Because the Economic Aid Act changed the loan forgiveness covered period from either an 8- or 24-week period to a covered period between 8 and 24 weeks at the election of the borrower, SBA is eliminating the “alternative covered period” as defined in the interim final rule published at 85 Fed. Reg. 33004, 33006 (June 1, 2020), as amended.


Additionally, an eligible borrower that received a loan of $150,000 or less shall not, at the time of its application for loan forgiveness, be required to submit any application or documentation in addition to the certification and information required by paragraph 7A(l)(1)(A) of the Small Business Act. Such borrowers must retain records relevant to the form that prove compliance with the PPP requirements —with respect to employment records, for the 4-year period following submission of the loan forgiveness application, and with respect to other records, for the 3-year period following submission of the loan forgiveness application. All other borrowers must follow the existing requirements for loan forgiveness applications and records retention. SBA may review and audit PPP loans of $150,000 or less and access any records the borrower is required to retain. All borrowers with loans of any size must provide documentation independently to a lender to satisfy relevant Federal, State, local or other statutory or regulatory requirements or in connection with an SBA loan review.


The Economic Aid Act repealed the CARES Act provision requiring SBA to deduct EIDL Advance Amounts received by borrowers from the forgiveness payment amounts remitted by SBA to the lender. The EIDL Advance Amount received by the borrower will not reduce the amount of forgiveness to which the borrower is entitled and will not be deducted from the forgiveness payment amount that SBA remits to the lender. Any EIDL Advance Amounts previously deducted from a borrower’s forgiveness amount will be remitted to the lender, together with interest to the remittance date.

What qualifies as a forgivable purpose?

PPP funds used for the following expenses, that are either paid or incurred during your covered period may be forgivable:

  • Payroll costs (defined below)
  • Interest payments on mortgage obligations that were in effect before February 15, 2020.
  • Rent payments for real and personal property on leases dated before February 15, 2020. These may include rents for buildings, vehicles, and equipment.
  • Utility payments, including electricity, gas, water, transportation, telephone and internet service, from services agreements dated before February 15, 2020.
  • Covered operations expenditures: Payment for any software, cloud computing, and other human resources and accounting needs.
  • Covered property damage costs: Costs related to property damage due to public disturbances that occurred during 2020 that are not covered by insurance.
  • Covered supplier costs: Expenditures to a supplier pursuant to a contract, purchase order, or order for goods in effect prior to taking out the loan that are essential to the recipient’s operations at the time at which the expenditure was made. Supplier costs of perishable goods can be made before or during the life of the loan.
  • Covered worker protection expenditure: Personal protective equipment and adaptive investments to help a loan recipient comply with federal health and safety guidelines or any equivalent State and local guidance related to COVID-19

What counts as payroll costs?

Payroll costs consist of compensation to employees whose principal place of residence is the United States and includes:

  • Compensation to employees (whose principal place of residence is the United States) in the form of salary, wages, commissions, or similar compensation; cash tips or the equivalent (based on employer records of past tips or, in the absence of such records, a reasonable, good-faith employer estimate of such tips);
  • Payment for vacation, parental, family, medical, or sick leave;
  • Allowance for separation or dismissal;
  • Payment for the provision of employee benefits consisting of group health care or group life, disability, vision, or dental insurance, including insurance premiums, and retirement;
  • Payment of state and local taxes assessed on compensation of employees;
  • For an independent contractor or sole proprietor: wages, commissions, income, or net earnings from self-employment, or similar compensation.

What if I used part of my PPP loan to refinance my EIDL loan? How much of this is eligible for loan forgiveness?

If your EIDL loan was used for payroll costs, your PPP loan must be used to refinance your EIDL loan.

What documentation do I need to provide to apply for loan forgiveness?

A complete list of required documents is included in the Forgiveness Application. For example, you may need to provide:


For PPP loans less than $150,000:

Submit a one page certification form to Funding Circle that includes a description of the number of employees the borrower was able to retain because of the covered loan, the estimated total amount of the loan spent on payroll costs, and the total loan amount. The borrower must also attest that the borrower accurately provided the required certification and complied with Paycheck Protection Program loan requirements.


For PPP loans more than $150,000:

Recipient required to submit documentation to the lender:

  • (1) documentation verifying the number of full-time equivalent employees on payroll and pay rates for the periods including–
  • (A) payroll tax filings reported to the Internal Revenue Service; and (B) State income, payroll, and unemployment insurance filings;
  • (2) documentation, including cancelled checks, payment receipts, transcripts of accounts, or other documents verifying payments on covered mortgage obligations, payments on covered lease obligations, and covered utility payments;
  • (3) a certification from a representative of the eligible recipient authorized to make such certifications that–
  • (A) the documentation presented is true and correct; and
  • (B) the amount for which forgiveness is requested was used to retain employees, make interest payments on a covered mortgage obligation, make payments on a covered rent obligation, or make covered utility payments

For second PPP loans, you will need to provide documentation demonstrating gross receipts during the first, second, third, or, only with respect to an application submitted on or after January 1, 2021, fourth quarter in 2020 that demonstrate not less than a 25 percent reduction from the gross receipts of the entity during the same quarter in 2019.

  • For second PPP loans, you will need to provide documentation demonstrating gross receipts during the first, second, third, or, only with respect to an application submitted on or after January 1, 2021, fourth quarter in 2020 that demonstrate not less than a 25 percent reduction from the gross receipts of the entity during the same quarter in 2019.
  • If the entity was not in business during 2019, but was in operation on February 15, 2020, had gross receipts during the second, third, or, only with respect to an application submitted on or after January 1, 2021, fourth quarter of 2020 that demonstrate not less than a 25 percent reduction from the gross receipts of the entity during the first quarter of 2020.

Please be aware that this list is subject to change.

When will I know how much of my loan has been approved for loan forgiveness?

First, we will confirm the amount of your loan. Then we will confirm the amount that is eligible for forgiveness within 60 days after receiving a fully completed forgiveness application and all related supporting documentation. The SBA then has 90 days to review your loan and application and send the money. But the approval process may be delayed if SBA decides to review your file and notifies us not to process your forgiveness application until their review is complete.

What if my loan isn't forgiven?

You’ll need to repay any amount that isn’t forgiven, but there’s no prepayment penalty, and the loan has a low, 1% fixed interest rate. Your loan will have either a two- or five-year repayment term if the SBA approved your loan depending on the day on which your loan was made. Please refer to your loan documents for your loan terms. All PPP loans made on or after June 5th, 2020 will have a five-year repayment term. The repayment term will begin from when the loan is first disbursed to the borrower. If only a portion of your loan is not forgiven, you will not have to make any payments until after the lender receives payment from the SBA for the forgiven portion of the loan. If the entire amount of your PPP loan is not forgiven by the SBA, then your payments will begin approximately 30 days after the lender has received notification from the SBA that all of your loan is ineligible for forgiveness.


Alternatively, repayments begin 10 months after the end of your covered period if you don’t apply for forgiveness.


Please be aware that this answer is subject to ongoing change.

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1 Paycheck Protection Program funds are limited and will be disbursed until March 31, 2021, or until funds have been exhausted, whichever comes first.

2 Eligibility requirements for loan forgiveness can be found at sba.gov

3 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 and TN.

4 Additional applicable timelines for businesses that were not in operation in Q1, Q2, Q3, and Q4 of 2019 are available. Applications submitted on or after January 1, 2021 are eligible to utilize the gross receipts from the fourth quarter of 2020.

5 If all or a portion of your PPP loan is not forgiven by the SBA, then your monthly repayment of the unforgiven amount will begin approximately 30 days after Funding Circle has been notified of the SBA's forgiveness decision or receives payment from the SBA.

Copyright © 2021 Funding Circle Limited. All rights reserved.


Funding Circle loans are made and arranged pursuant to California Financing License No. 6054785, North Dakota Money Broker License MB 102840, South Dakota Money Lending License MYL.3054, Vermont Commercial Lender License No. 1287979 CLL, and Florida Consumer Company License CF9901099. Partner Loans are made or arranged pursuant to their applicable lending license(s).