Update as of April 24, 2020: After the PPP was launched in early April, the funds were quickly exhausted. As of Friday, April 24, new legislation has been signed to add $310 billion to the PPP budget. To learn more, please read our article here.
COVID-19 news and updates change quickly and frequently. Some of the information in this article may soon be out of date. We will do our best to keep details updated during this challenging time. The information below reflects information as of April 14, 2020.
Earlier this month, we shared updates on how contractors and small businesses can apply for loans under the Coronavirus Aid, Relief, and Economic Security Act’s (CARES) Paycheck Protection Program (PPP). As of last week, PayPal, Intuit (who owns Quickbooks), and Square are approved borrowers for the PPP.
These fintech leaders are now offering tools to help small businesses get loan approval— faster. If you have not yet applied for the PPP, now is the time. We suggest reviewing these new programs to help support your application needs.
Here are a few details surrounding these new programs:
PayPal has been in the small business lending game since 2013. To date, PayPal has provided access to more than $15 billion in funding for over 305,000 small businesses.
Using LoanBuilder.com, a service offered by PayPal, applicants can apply directly online and download a loan calculator that can help you calculate your average monthly payroll costs (which are the basis for your loan amount).
“Small businesses have been hit especially hard by the coronavirus crisis,” Dan Schulman, CEO of PayPal, said in a press release. “There is an urgent need to help every qualified business access the funding needed to ensure that as many workers as possible keep their benefits and paychecks.”
To apply for a Payment Protection Program loan through PayPal, you will need to use funds for payroll, rent, healthcare benefits and insurance premiums, utilities, mortgage interest, or interest on other debt incurred before February 15, 2020. Timing is paramount, as this program is on a first-come, first-approved basis. You will also need to certify that your business has not already received a PPP loan from another provider.
Intuit is participating as a PPP non-bank lender through the QuickBooks Capital system. In addition to being a lender, Intuit QuickBooks will process payroll information and small business owners are able to get assistance in determining eligibility for federal relief.
In a press release, the company said loans will be initially available for “a subset of QuickBooks Online Payroll customers,” who will be able to apply as early as this week.
According to Intuit, its direct lending will speed up PPP processes as “validation of payroll information is necessary to complete the PPP application. For QuickBooks Payroll customers, the customers’ data is already in the QuickBooks system. … One in 12 American workers are paid through our payroll systems, which makes this an impactful place to start.”
Intuit’s Aid Assist, a free service, can assist U.S.-based businesses, self-employed, contractors, freelancers, and gig workers with understanding different business relief programs. Intuit Aid Assist provides loan eligibility assessments, loan forgiveness calculators, and loan amount calculators.
Intuit has also launched Stimulus Registration through TurboTax to assist consumers in registering to receive their stimulus checks from the government.
Visit the Intuit QuickBooks website to view additional information on how to get started applying for the PPP loan.
Square has prepared a “rollout application launch” that will prioritize the millions of sellers utilizing the service currently, but plans to be open to all small businesses soon. Square will start to send out applications this week.
If you currently utilize Square, you will receive a notification through your Square Dashboard when your application is available, beginning with employers whose application data can be verified automatically.
In the meantime, Square’s website is offering guides that explain the ins and outs of the Payment Protection Program.
We encourage you to apply as soon as possible for the PPP, as applications will be reviewed in the order they are received. To learn more, please visit the U.S. Department of Treasury website.