First draw and second draw PPP loans are available through Funding Circle. Funds are limited and will be disbursed on a first come, first served basis.1Apply now
All loans will have a non-compounding and non-adjustable 1% interest rate.
For qualified loan uses like payroll costs, mortgage interest, rent, operations expenditures, property damage costs, supplier costs, personal protective equipment and utilities.
Funding Circle can provide loans from $5,000 up to $2 Million.
There are no collateral requirements or personal guarantees needed.
Please be prepared to submit all documentation when requested. We will alert you of documents required as soon as possible. Failure to provide all requested documents will delay your submission.
Payroll costs include:
Employee salary, wages and commissions; payment of cash tips; payment of vacation; parental, family, medical or sick leave; allowance for dismissal or separation; payment required for group health benefits (including insurance premiums); payment of retirement benefits; or payment of state or local tax assessed on employee compensation; and sole proprietor income or independent contractor compensation not in excess of $100,000.
Payroll costs exclude:
Compensation of an individual person in excess of $100,000 (as prorated for the period); federal employment taxes imposed or withheld taxes; compensation to an employee whose principal residence is outside of the U.S.; qualified sick leave for which a credit is allowed under Section 7001 of the Families First Coronavirus Response Act; and qualified family leave wages for which a credit is allowed under Section 7001 of the Families First Coronavirus Response Act.
Compensation in excess of $100,000
Subtract any compensation paid to an employee in excess of $100,000 on an annualized basis, as prorated for the period during which the payments are made or the obligation to make the payments is incurred.
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.
Sign in and complete your streamlined application
Access your personal second draw application to confirm a few details and submit additional documents
Hear from us
Your dedicated Account Manager will contact you through email 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 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.
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 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.
"Applied for Loan on Friday, funds in account on Tuesday!!! Amazingly smooth process from beginning to end! Kristen Schieck is an AMAZING Account Manager!!" – Mick H.
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.
The Paycheck Protection Program (PPP) is a loan program administered by the Small Business Administration (SBA), allowing eligible small businesses to apply for federally guaranteed, forgivable loans.Apply now
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:
For a first PPP loan:Generally, eligible 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 can apply for a first PPP loan.
For second PPP loan:Generally, eligible businesses that were in operation on February 15, 2020 – including sole proprietorships, self–employed individuals, and independent contractors – with 300 or fewer employees, have used or will use the full amount of their first PPP loan before disbursement of second loan and can 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 can apply for a second PPP loan.4
You are ineligible for a PPP loan if, for example:
An applicant is not eligible for a Second Draw PPP Loan if the applicant is:
No. If the applicant or the owner of the applicant is the debtor in a bankruptcy proceeding, either at the time it submits the application or at any time before the loan is disbursed, the applicant is ineligible to receive a PPP loan. If the applicant or the owner of the applicant becomes the debtor in a bankruptcy proceeding after submitting a PPP application but before the loan is disbursed, it is the applicant’s obligation to notify the lender and request cancellation of the application. Failure by the applicant to do so will be regarded as a use of PPP funds for unauthorized purposes.
You are eligible for a PPP loan if:
However, if you are a partner in a partnership, you may not submit a separate PPP loan application for yourself as a self-employed individual. Instead, the self-employment income of general active partners may be reported as a payroll cost, up to $100,000 on an annualized basis, as prorated for the period during which the payments are made or the obligation to make the payments is incurred on a PPP loan application filed by or on behalf of the partnership. Partnerships are eligible for PPP loans under the CARES Act, as amended by the Economic Aid Act, and the Administrator has determined, in consultation with the Secretary of the Treasury (Secretary), that limiting a partnership and its partners (and an LLC filing taxes as a partnership) to one PPP loan is necessary to help ensure that as many eligible borrowers as possible obtain PPP loans before the statutory deadline of March 31, 2021. This limitation will allow lenders to more quickly process applications and lower the burdens of applying for partnerships/partners. The Administrator has further determined that permitting partners to apply as self-employed individuals would create unnecessary confusion regarding which entity, the partner or the partnership, applies for partner and LLC member income, and would generate loan proceeds use coordination and allocation issues. Rent, mortgage interest, utilities, other debt service, operations expenditures, property damage costs, supplier costs, and worker protection expenditures are generally incurred at the partnership level, not partner level, so it is most natural to provide the funds for these expenses to the partnership, not individual partners. In addition, you should be aware that participation in the PPP may affect your eligibility for state-administered unemployment compensation or unemployment assistance programs, including the programs authorized by Title II, Subtitle A of the CARES Act, or CARES Act Employee Retention Credits. On June 26, 2020, SBA issued additional guidance for those individuals with self-employment income who: (i) were not in operation in 2019 but who were in operation on February 15, 2020, and (ii) filed a Form 1040 Schedule C for 2020. See “How To Calculate Maximum Loan Amounts – By Business Type,” Question 10 posted on SBA’s website
Yes, in evaluating eligibility, a seasonal business will be considered to have been in operation as of February 15, 2020, if the business was in operation for any 12-week period between February 15, 2019 and February 15, 2020. This approach aligns the eligibility criteria for seasonal businesses being in operation with the time period for calculation of a seasonal employer’s maximum loan amount from section 336 of the Economic Aid Act and makes PPP loans available to seasonal businesses that operate outside of the original, more limited time frame.
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.
To understand how the SBA determines the maximum size of your PPP loan, we recommend reading the SBA guidance released on this topic as of January 17, 2021.
For a first draw PPP loan, your loan amount will be 250% (or 2.5 times) your average monthly payroll.
For a second draw PPP loan, your loan amount will be 250% (or 2.5 times) your monthly average payroll for most industries. If your business is a restaurant or accommodations, your loan amount will be 350% (or 3.5 times) your monthly average payroll.
Your monthly payroll includes wages, tips, group life, disability, vision, and dental insurance, 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 must use the average total monthly payments for payroll for any 12 week period selected by the employer between February 15, 2019 and February 15, 2020, 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 15, 2021, excluding costs over $100,000 on an annualized basis for each employee.
For Sole Proprietors, Independent Contractor, or Self Employed Individual
Additional documentation for payroll verification may be required or considered acceptable beyond those enumerated in Federal statute to determine eligibility. We require payroll verification to determine eligibility and size of your loan. Your account manager will reach out to obtain this documentation.
No. Funding Circle is not accepting requests for recalculations of first draw loans made before August 8, 2020. However, if you apply for a second draw, we will ensure you receive the maximum loan amount you are eligible for.
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:
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:
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.
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:
If you filed a schedule C in 2019 and do have employees (other than yourself), you can expect to upload the following documents:
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:
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 quarter4.
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.
Businesses can apply for this SBA 7(a) loan through a qualified lender for the Paycheck Protection Program, including Funding Circle. Sign up for updates today and we will alert you as soon as the application opens.
Funding Circle does not charge an application fee to apply for a Paycheck Protection Program loan.
No. Paycheck Protection Program loans are unsecured.
Once the SBA releases details and guidance on the Paycheck Protection Program, Funding Circle can review your application and submit it to the SBA for approval. If your loan is approved, funds will be disbursed as fast as possible by ACH payment, often within one business day after loan approval.
Yes. The approved uses of funds are:
Payroll costs such as:
Non-payroll costs such as:
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.
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.
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.
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.
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.
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.
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).
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.
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.
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.
You may elect a covered period ending at the point of your choosing between 8 and 24 weeks after origination until March 31, 2021.
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.
PPP funds used for the following expenses, that are either paid or incurred during your covered period may be forgivable:
Payroll costs consist of compensation to employees whose principal place of residence is in the United States and includes the following:
If your EIDL loan was used for payroll costs, your PPP loan must be used to refinance your EIDL loan.
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:
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.
Please be aware that this list is subject to change
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.
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.
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 https://www.sba.gov/document/policy-guidance--ppp-interim-final-rule.
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.
6 Borrowers have until March 31, 2021, to communicate their chosen covered period to the lender. For purposes of loan forgiveness, the covered period is the period beginning on the date the lender disburses the PPP loan and ending on a 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.