Funding Circle is currently accepting PPP applications through August 8, 2020.
Paycheck Protection Program Extended
DAYS HOURS MINUTES SECONDS
Only 60% of funds towards payroll costs
To qualify for 100% forgiveness, use all funds towards approved reasons with at least 60% towards payroll costs. Previously was 75%.
Extended payment deferral period
Borrowers will not have to make payments until the forgivable amount of the PPP loan is paid to the lender.
Longer timeframe to rehire
Relaxed rules to qualify for forgiveness
Use funds to cover costs over the next 24 weeks or until December 31, whichever is earlier. Previously was 8 weeks.
Use the money for 6 months
Extends the June 30 deadline to December 31 for companies to rehire impacted employees.
Defer taxes on funds till next year
Recipients will now be able to defer certain payroll taxes to 2021
First payment deferred
The 6-month payment deferral grace period has been extended to 10 months after your covered period.
Other loan features
If your loan is not fully forgiven, the following rules apply
5 year loan term (was 2 years)
Low monthly payments at 1% interest rate for any loan amount not forgiven.
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.
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.
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.
Paycheck Protection Loan Forgiveness FAQ
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 for my loan?
You may be able to use one of two covered periods for your loan.
Your covered period lasts from when the loan was first disbursed to you until the end of 24 weeks or until December 31, 2020 - whichever comes first. If your loan was funded before June 5, 2020, you may elect to use the original covered period, which was the period from the date your loan was funded until the end of 8-weeks from that date. We encourage all borrowers whose loans were funded before June 5, 2020, to evaluate their personal situation when deciding to choose between the 8-week or 24-week covered period.
In addition, if you use a biweekly, or more frequent, payroll cycle, you can also use an alternative payroll covered period for payroll costs. This allows you to start your covered period for eligible payroll costs with the first day of the first payroll period following the disbursement instead of when your loan was disbursed. However, even if you opt for the alternative payroll covered period, your standard covered period applies to non-payroll costs.
How much of my loan can be forgiven?
You may be eligible to have your entire loan and the accrued interest forgiven. You need to spend at least 60% of your loan proceeds on forgivable payroll costs to qualify for full loan forgiveness.
Complete forgiveness also requires that you use the entire loan for forgivable purposes during your covered period, and that employee and compensation levels are maintained during the covered period.
Funds you used for non-forgivable purposes and funds remaining after your covered period won’t be forgiven. Even if you use the funds for forgivable purposes during your covered period, you may not qualify for full forgiveness if you don’t maintain full-time equivalent employee levels and compensation of each employee during the covered period.
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 was 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.
What counts as payroll costs?
Payroll costs consist of compensation to employees whose principal place of residence is in the United States and includes the following:
- Salary, wages, commissions, and tips (capped at $100,000 on an annualized basis for each employee);
- Employee benefits, including vacation, parental, family, medical, or sick leave; an allowance for separation or dismissal; group health care benefits; and retirement benefit.
- State and local taxes assessed on compensation.
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% 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. The repayment term will begin from when the loan is first disbursed to the borrower. The borrower does not have to make any payments until after the lender receives payment from the SBA for the forgiven portion of the loan.
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.
Please note that these answers are subject to change based on further guidance and in particular, SBA guidance. Updated 6/9/2020
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1 Only applicable for borrowers funded after the Flexibility Act has passed (June 5, 2020)
2 If a borrower has not applied for forgiveness after the end of their forgiveness spending window (the earlier of 24 weeks after loan origination or Dec 31, 2020), the payment deferral period will end 10 months after the end of that window of time.