What is the Small Business Administration doing to help?

The Small Business Administration has authorized billions of dollars to assist small businesses and not for profits with hampered cash flow and ongoing overhead, as a result of the COVID-19 pandemic. These loans amount to 2.5 times the average monthly payroll cost, based on the prior year, and are potentially forgivable debt. For example, 2019 total payroll costs of 1.2 million yields a $250,000 loan. Lending Source, Ltd is helping businesses and not for profits (with 500 employees or less) navigate the SBA Forgivable Loans program to expedite the receipt of funds.

More about the loan program.

These loans have no personal guarantees and are eligible for forgiveness if the proceeds are used for employee-related expenses, interest payments, rent, and utilities. Any portion of the funds that are used for other purposes will be paid back over 10 years at an interest rate of 4%. The forgivable portion of the loan will not be included in taxable income.

We will need the following information to help you with the loan process:

  • SBA Form 1919 or corresponding SBA Form 912, if applicable. Attached (needs filled out by any owner over 20%)
  • Articles of Incorporation/Organization of each borrowing entity
  • By Laws/Operating Agreement of each borrowing entity
  • All owners Driver’s Licenses
  • Payroll Expense verification documents to include:
    • IRS Form 940 and 941
    • Payroll Summary Report with the corresponding bank statement
    • If a Payroll Summary Report is not available, Employee Pay Stubs as of February 15, 2020 (or corresponding period) with a corresponding bank statement, and,
    • Breakdown of payroll benefits (vacation, allowance for dismissal, group healthcare benefits, retirement benefits, etc.
  • 1099s (if Independent Contractor)
  • Certification that all employees live within the United States. If any do not, provide a detailed list with corresponding salaries of all employees outside the United States
  • Most recent Mortgage Statement or Rent Statement (Lease)
  • Most recent Utility Bills (Electric, Gas, Telephone, Internet, Water)

Let Lending Source Ltd. simplify this process for you by submitting your loan through multiple competitive SBA lenders and monitor your loan through the process to see that your business receives your funding timely. This loan program can greatly help your business succeed through these uncertain times.

Here is some more information about small business loans during COVID-19.

Contact us here!

Call: 866-806-8513

Email: 7a@LendingSourceLtd.com