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Paycheck Protection Program Loans Are Here

First draw and second draw PPP loans are available through Lends Well and Partners. 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 Forgiveness

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 Million

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

No Collateral Needed

There are no collateral requirements or personal guarantees needed.

Our Paycheck Protection Program application process

Lends Well  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 Lends Well PPP Recipient

  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.

Kristen Smith

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.

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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

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

Get funded

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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.

We’re in this together.

Lends Well 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 Lends Well

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.

Program Details:

  • 250% of average monthly payroll (350% for second draw only if food services 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

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What is the Paycheck Protection Program?


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:

  • 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
  • Fixed interest rate of 1.00%
  • Can elect a covered period between 8 and 24 weeks6
  • 5-year term repayment loans made on or after June 5, 2020
  • Loan forgiveness of up to 100% of the principal amount2




Is your small business eligible for the program?


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




What businesses, organizations, and individuals are ineligible for a First Draw PPP Loan?


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.




Who is not eligible for a Second Draw PPP Loan?


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.




Will I be approved for a PPP loan if my business is in bankruptcy?


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.




I have income from self-employment and file a Form 1040, Schedule C. Am I eligible for a PPP Loan?


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




If a seasonal business was dormant or not fully operating as of February 15, 2020, is it still eligible?


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.




I have determined that I am eligible. What is the maximum loan amount?


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.




How do I calculate the maximum amount I can borrow?


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.

  • PPP: How to Calculate Maximum Loan Amounts for First Draw Loans
  • Second Draw Paycheck Protection Program (PPP) Loans: How to Calculate Revenue Reduction and Maximum Loan Amounts




How is the loan amount determined?


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.




Can I request a recalculation of my First Draw PPP loan?


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.





Document Requirements

What documents do I need in general?


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:

  • A copy of an official ID document, such as a driver’s license, for all business owners who own more than 20%.
  • Bank account verification by connecting via Plaid (more details on Plaid in the question below) or through providing a voided check.




Why should I use Plaid to verify my bank account information?


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:

  • Your data is encrypted using a combination of the Advanced Encryption Standard (AES 256) and Transport Layer Security, which helps keep your sensitive data secure and protected.
  • Funding Circle only has access to view your account information, such as the account owner’s name, account number and routing number.
  • Funding Circle never has access to your login credentials.
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.




I filed a Schedule C in 2019 and I don’t have employees


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:

  • 2019 1040 Schedule C
  • One 2019 business bank statement and February 2020 business bank statement




I filed a Schedule C in 2019 and I have employees


If you filed a schedule C in 2019 and do have employees (other than yourself), you can expect to upload the following documents:

  • 2019 1040 Schedule C
  • 2019 Form 941s for all four quarters
  • Q1 2020 Form 941 or February 2020 bank statement showing payroll debit(s) or a payroll statement covering February 15, 2020
  • If you have a 2019 full year comprehensive payroll report from payroll processor/PEO, you may submit that instead of submitting the Schedule C and the 941s




I filed a Form 1120/1120s or Form 1065 in 2019


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:

  • 2019 Business Tax Return (including K-1s if you filed a 1065)
  • 2019 Form 941s for all four quarters (if you have employees)
  • Q1 2020 Form 941 or February 2020 bank statement showing payroll debit(s) or a payroll statement covering February 15, 2020
  • If you have a 2019 full year comprehensive payroll report from payroll processor/PEO, you may submit that instead of submitting the first two requirements (2019 Business Tax Return and the 941s)




I am applying for my Second Draw PPP loan


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.





Frequently Asked Questions

What is the Paycheck Protection Program?


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:

  • 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
  • Fixed interest rate of 1.00%
  • Can elect a covered period between 8 and 24 weeks6
  • 5-year term repayment loans made on or after June 5, 2020
  • Loan forgiveness of up to 100% of the principal amount2




Is your small business eligible for the program?


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




What businesses, organizations, and individuals are ineligible for a First Draw PPP Loan?


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.




Who is not eligible for a Second Draw PPP Loan?


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.




Will I be approved for a PPP loan if my business is in bankruptcy?


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.




I have income from self-employment and file a Form 1040, Schedule C. Am I eligible for a PPP Loan?


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




If a seasonal business was dormant or not fully operating as of February 15, 2020, is it still eligible?


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.




I have determined that I am eligible. What is the maximum loan amount?


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.




How do I calculate the maximum amount I can borrow?


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.

  • PPP: How to Calculate Maximum Loan Amounts for First Draw Loans
  • Second Draw Paycheck Protection Program (PPP) Loans: How to Calculate Revenue Reduction and Maximum Loan Amounts




How is the loan amount determined?


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.




Can I request a recalculation of my First Draw PPP loan?


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.





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, Lends Well and our partners will start processing these applications).

Paycheck Protection Loan Forgiveness FAQ

Updated 01/11/2021

Do I apply for forgiveness with the SBA or my lender?


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.




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 elect a covered period ending at the point of your choosing between 8 and 24 weeks after origination until March 31, 2021.




Can my PPP loan be forgiven in whole or in part?


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.




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 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




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:

  • 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.




What does NOT count as payroll costs?


  • 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).




What if I used part of my PPP loan to refinance my EIDL loan? How much of this is eligible for loan forgiveness?


If your EIDL loan was used for payroll costs, your PPP loan must be used to refinance your EIDL loan.




What documentation do I need to provide to apply for loan forgiveness?


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:

  • (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
  • 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.
  • 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




When will I know how much of my loan has been approved for loan forgiveness?


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.




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% 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.





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.

  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.  Lends Well 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 Lends Well 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.