Paycheck Protection Program Loans Are Here

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.1

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Only 1% Interest

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

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100% Loan Forgiveness2

For qualified loan uses like payroll costs, mortgage interest, rent, operations expenditures, property damage costs, supplier costs, personal protective equipment and utilities.

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Loans from $5,000 – $2 Million3

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

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No Collateral Needed

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.

Paycheck Protection Program Loan Calculator

Were you in business February 15, 2020?

Is this your first or second PPP loan?

What were your total payroll costs for 2019, 2020 or in the last 12 months?

Disclaimer: Seasonal Employers (In operation for less than 7 months a year) 2.5x any average 12 week payroll between February 15, 2019 and February 15, 2020.

Partnerships (LLC), Self Employed, Sole Proprietor, or Independent Contractor? Your calculations for maximum loan amount differ. See the question “How do I calculate the maximum amount I can borrow?” in our loan forgiveness FAQ.

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How much you may qualify for

$—

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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.

Existing Funding Circle PPP Recipient
First time Funding Circle PPP application
  1. Sign in and complete your streamlined application

    Access your personal second draw application to confirm a few details and submit additional documents

  2. 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.

  3. Get a decision

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

  4. You get funded!

    If approved, you’ll receive money in your bank account as soon as possible, once you accept your offer.

  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.

  4. You get funded!

    If approved, you’ll receive money in your bank account as soon as possible, once you accept your offer.

Kristen Schieck

Account Manager

"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.

Chad Rossiter

Senior Account Manager

"The process was easy and fast and best of all we got the funding we needed at a very favorable rate and term. We are thrilled and really enjoyed working with Chad." – Mary Hall

*Testimonials based on non-SBA term loan application and funding process

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.

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Paycheck Protection Program with Funding Circle

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.

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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 (see forgiveness FAQ)
  • 100% guarantee by SBA
  • No collateral or personal guarantees needed

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 8 or 24 week covered period 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

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:

  • You are engaged in any activity that is illegal under Federal, state, or local law;
  • You are a household employer (individuals who employ household employees such as nannies or housekeepers);
  • An owner of 20 percent or more of the equity of the applicant is presently incarcerated or, for any felony, presently subject to an indictment, criminal information, arraignment, or other means by which formal criminal charges are brought in any jurisdiction; or has been convicted of, pleaded guilty or nolo contendere to, or commenced any form of parole or probation (including probation before judgment) for, a felony involving fraud, bribery, embezzlement, or a false statement in a loan application or an application for federal financial assistance within the last five years or any other felony within the last year;
  • You, or any business owned or controlled by you or any of your owners, has ever obtained a direct or guaranteed loan from SBA or any other Federal agency that is currently delinquent or has defaulted within the last seven years and caused a loss to the government;
  • Your business or organization was not in operation on February 15, 2020;
  • You or your business received or will receive a grant under the Shuttered Venue Operator Grant program under section 324 of the Economic Aid Act;
  • The President, the Vice President, the head of an Executive Department, or a Member of Congress, or the spouse of such person as determined under applicable common law, directly or indirectly holds a controlling interest in your business;
  • Your business is an issuer, the securities of which are listed on an exchange registered as a national securities exchange under section 6 of the Securities Exchange Act of 1934 (15 U.S.C. 78f)
  • Your business has permanently closed.

An applicant is not eligible for a Second Draw PPP Loan if the applicant is:

  • excluded from eligibility under the Consolidated First Draw PPP IFR;35
  • a business concern or entity primarily engaged in political activities or lobbying activities, as defined in section 3 of the Lobbying Disclosure Act of 1995 (2 U.S.C. 1602), including any entity that is organized for research or for engaging in advocacy in areas such as public policy or political strategy or otherwise describes itself as a think tank in any public documents;
  • any business concern or entity:
    • for which an entity created in or organized under the laws of the People’s Republic of China or the Special Administrative Region of Hong Kong, or that has significant operations in the People’s Republic of China or the Special Administrative Region of Hong Kong, owns or holds, directly or indirectly, not less than 20 percent of the economic interest of the business concern or entity, including as equity shares or a capital or profit interest in a limited liability company or partnership; or
    • that retains, as a member of the board of directors of the business concern, a person who is a resident of the People’s Republic of China;
  • any person required to submit a registration statement under section 2 of the Foreign Agents Registration Act of 1938 (22 U.S.C. 612);
  • any person or entity that receives a grant for shuttered venue operators under section 324 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act;
  • any entity in which the President, the Vice President, the head of an Executive department, or a Member of Congress, or the spouse of such person as determined under applicable common law, directly or indirectly holds a controlling interest in the entity, where:
    • “controlling interest” means owning, controlling, or holding not less than 20 percent, by vote or value, of the outstanding amount of any class of equity interest in an entity;
    • “equity interest” means:
      • a share in an entity, without regard to whether the share is transferable or classified as stock or anything similar;
      • a capital or profit interest in a limited liability company or partnership; or
      • a warrant or right, other than a right to convert, to purchase, sell, or subscribe to a share or interest described in (A) or (B), respectively;
    • “Executive department” has the meaning given the term in section 101 of title 5, United States Code;
    • “Member of Congress” means a Member of the Senate or House of Representatives, a Delegate to the House of Representatives, and the Resident Commissioner from Puerto Rico; and
    • For the purpose of determining whether a person has a controlling interest in the entity, the securities owned, controlled, or held by the President, the Vice President, the head of an Executive department, or a Member of Congress, shall be aggregated with the securities held by his or her spouse as determined under applicable common law;
  • any issuer, the securities of which are listed on an exchange registered as a national securities exchange under section 6 of the Securities Exchange Act of 1934 (15 U.S.C. 78f), where the terms “exchange,” “issuer,” and “security” have the meanings given those terms in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)) (except SBA will not consider whether a news organization that is eligible under subsection (c)(4) is affiliated with an entity, which includes any entity that owns or controls such news organization, that is an issuer);
  • an entity that has previously received a Second Draw PPP Loan; or
  • an entity that has permanently closed.

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:

  • you were in operation on February 15, 2020;
  • you are an individual with self-employment income (such as an independent contractor or a sole proprietor);
  • your principal place of residence is in the United States; and
  • you filed or will file a Form 1040 Schedule C for 2019 or meet the requirements below.

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, your 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, your loan amount will be 250% (or 2.5 times) your monthly average payroll costs 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.

For most businesses, you can use the loan calculator provided by Funding Circle or you can manually calculate using the methodology below:

Step 1: Aggregate payroll costs from 2019 or 2020 for employees whose principal place of residence is the United States.

  • Your monthly payroll includes wages, tips, group life, disability, vision, and dental insurance, retirement benefits, and taxes.

Step 2: 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.

Step 3: Calculate average monthly payroll costs (divide the amount from Step 2 by 12).

Step 4: Multiply the average monthly payroll costs from Step 3 by 2.5.

Step 5: For first PPP draw only: Add the outstanding amount of an Economic Injury Disaster Loan (EIDL) made between January 31, 2020 and April 3, 2020 that you seek to refinance. Do not include the amount of any “advance” under an EIDL COVID-19 loan (because it does not have to be repaid). If you did not receive an EIDL loan or you do not wish to refinance it, you can ignore this step.

*For seasonal businesses (does not operate for more than 7 months in any calendar year or, during the preceding calendar year, it had gross receipts for any 6 months of that year that were not more than 33.33 percent of the gross receipts for the other 6 months of that year.), 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.

The following methodology should be used to calculate the maximum amount that partnerships can borrow:

Step 1: Compute 2019 or 2020 payroll (using the same year for all items) by adding (1) net earnings from self-employment of individual general partners in 2019 or 2020, as reported on IRS Form 1065 K-1, reduced by section 179 expense deduction claimed, unreimbursed partnership expenses claimed, and depletion claimed on oil and gas properties, multiplied by 0.9235,57 that is not more than $100,000 per partner; (2) 2019 or 2020 gross wages and tips paid to your employees whose principal place of residence is in the United States, if any, which can be computed using 2019 or 2020 IRS Form 941 Taxable Medicare wages and tips (line 5c-column 1) from each quarter plus any pre-tax employee contributions for health insurance or other fringe benefits excluded from Taxable Medicare wages and tips, subtracting any amounts paid to any individual employee in excess of $100,000 and any amounts paid to any employee whose principal place of residence is outside the U.S; (3) 2019 or 2020 employer contributions for employee group health, life, disability, vision and dental insurance, if any (portion of IRS Form 1065 line 19 attributable to those contributions); (4) 2019 or 2020 employer contributions to employee retirement plans, if any (IRS Form 1065 line 18); and (5) 2019 or 2020 employer state and local taxes assessed on employee compensation, primarily state unemployment insurance tax (from state quarterly wage reporting forms), if any.

Step 2: Calculate the average monthly payroll costs (divide the amount from Step1 by 12).

Step 3: Multiply the average monthly payroll costs from Step 2 by 2.5.

Step 4: For first PPP draw only: Add any outstanding amount of any EIDL made between January 31, 2020 and April 3, 2020 that you seek to refinance. Do not include the amount of any advance under an EIDL COVID-19 loan (because it does not have to be repaid).

You must supply 2019 or 2020 (whichever you used to calculate loan amount) IRS Form 1065 (including K-1s) and other relevant supporting documentation if the partnership has employees, including the 2019 or 2020 (whichever you used to calculate loan amount) IRS Form 941 and state quarterly wage unemployment insurance tax reporting form from each quarter (or equivalent payroll processor records or IRS Wage and Tax Statements) along with records of any retirement or health insurance contributions. If the partnership has employees, a payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish the partnership was in operation and had employees on that date. If the partnership has no employees, an invoice, bank statement, or book of record establishing the partnership was in operation on February 15, 2020 must instead be provided

How you calculate your maximum loan amount depends upon whether or not you employ other individuals.

If you have no employees, the following methodology should be used to calculate your maximum loan amount:

Step 1: Find your 2019 or 2020 IRS Form 1040 Schedule C line 31 net profit amount (if you are using 2020 to calculate payroll costs and have not yet filed a 2020 return, fill it out and compute the value). If this amount is over $100,000, reduce it to $100,000. If this amount is zero or less, you are not eligible for a PPP loan.

Step 2: Calculate the average monthly net profit amount (divide the amount from Step 1 by 12).

Step 3: Multiply the average monthly net profit amount from Step 2 by 2.5.

Step 4: For first PPP draw only: Add the outstanding amount of any Economic Injury Disaster Loan (EIDL) made between January 31, 2020 and April 3, 2020 that you seek to refinance. Do not include the amount of any advance under an EIDL COVID-19 loan (because it does not have to be repaid).

You must provide the 2019 or 2020 (whichever you used to calculate loan amount) Form 1040 Schedule C with your PPP loan application to substantiate the applied-for PPP loan amount and a 2019 or 2020 (whichever you used to calculate loan amount) IRS Form 1099-MISC detailing nonemployee compensation received (box 7), invoice, bank statement, or book of record that establishes you are self-employed. If using 2020 to calculate loan amount, this is required regardless of whether you have filed a 2020 tax return with the IRS. You must provide a 2020 invoice, bank statement, or book of record to establish you were in operation on or around February 15, 2020.

If you have employees, the following methodology should be used to calculate your maximum loan amount:

Step 1: Compute 2019 or 2020 payroll (using the same year for all items) by adding the following:

  • a. Your 2019 or 2020 Form 1040 Schedule C line 31 net profit amount (if you are using 2020 and have not yet filed a 2020 return, fill it out and compute the value), 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, if this amount is over $100,000, reduce it to $100,000, if this amount is less than zero, set this amount at zero;
  • b. 2019 or 2020 gross wages and tips paid to your employees whose principal place of residence is in the United States computed using 2019 or 2020 IRS Form 941 Taxable Medicare wages & tips (line 5c- column 1) from each quarter plus any pre-tax employee contributions for health insurance or other fringe benefits excluded from Taxable Medicare wages & tips; subtract any amounts paid to any individual 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 and any amounts paid to any employee whose principal place of residence is outside the United States; and
  • c. 2019 or 2020 employer contributions to employee group health, life, disability, vision and dental insurance (portion of IRS Form 1040 Schedule C line 14 attributable to those contributions); retirement contributions (Form 1040 Schedule C line 19), and state and local taxes assessed on employee compensation (primarily under state laws commonly referred to as the State Unemployment Tax Act or SUTA from state quarterly wage reporting forms).

Step 2: Calculate the average monthly amount (divide the amount from Step 1 by 12).

Step 3: Multiply the average monthly amount from Step 2 by 2.5.

Step 4: For first PPP draw only: Add the outstanding amount of any EIDL made between January 31, 2020 and April 3, 2020 that you seek to refinance. Do not include the amount of any advance under an EIDL COVID-19 loan (because it does not have to be repaid).

You must supply your 2019 or 2020 (whichever you used to calculate loan amount) Form 1040 Schedule C, Form 941 (or other tax forms or equivalent payroll processor records containing similar information) and state quarterly wage unemployment insurance tax reporting forms from each quarter in 2019 or 2020 (whichever you used to calculate loan amount) or equivalent payroll processor records, along with evidence of any retirement and health insurance contributions, if applicable. A payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish you were in operation on February 15, 2020.

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

  • 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 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.

Generally, you must provide your Form 941 (or other tax forms containing similar information) and state quarterly wage unemployment insurance tax reporting forms from each quarter in 2019 or 2020 (whichever you used to calculate loan amount), or equivalent payroll processor records, along with evidence of any retirement and health insurance contributions. A payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish you were in operation on February 15, 2020.

Partnership:

  • 2019 or 2020 (whichever you used to calculate loan amount) IRS Form 1065 (including K-1s) and other relevant supporting documentation if the partnership has employees, including the 2019 or 2020 (whichever you used to calculate loan amount)
  • IRS Form 941 and state quarterly wage unemployment insurance tax reporting form from each quarter (or equivalent payroll processor records or IRS Wage and Tax Statements) along with records of any retirement or health insurance contributions.
  • If the partnership has employees, a payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish the partnership was in operation and had employees on that date.
  • If the partnership has no employees, an invoice, bank statement, or book of record establishing the partnership was in operation on February 15, 2020 must instead be provided

Self Employed, Independent Contractor or Sole Proprietor:

You must provide the 2019 or 2020 (whichever you used to calculate loan amount) Form 1040 Schedule C with your PPP loan application to substantiate the applied-for PPP loan amount and a 2019 or 2020 (whichever you used to calculate loan amount) IRS Form 1099-MISC detailing nonemployee compensation received (box 7), invoice, bank statement, or book of record that establishes you are self-employed. If using 2020 to calculate loan amount, this is required regardless of whether you have filed a 2020 tax return with the IRS. You must provide a 2020 invoice, bank statement, or book of record to establish you were in operation on or around February 15, 2020.

Frequently Asked Questions

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:

  • 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.

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.

Funding Circle Account Managers are currently available and looking forward to answering all of your questions. You can email us at ppp@fundingcircle.com.

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 01/11/2021

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 (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

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

  • 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.
  • Any compensation of an employee whose principal place of residence is outside of the United States;
  • The compensation of an individual 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;
  • Federal employment taxes imposed or withheld during the applicable period, including the employee’s and employer’s share of FICA (Federal Insurance Contributions Act) and Railroad Retirement Act taxes, and income taxes required to be withheld from employees; and
  • Qualified sick and family leave wages for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act (Public Law 116–127).

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:

  • (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.

  • If the entity was not in business during the first, second, or third quarter of 2019, but was in business during the fourth quarter of 2019, had gross receipts during the first, 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 fourth quarter of 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

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.