Apply Now for the Next Round of PPP

Capital Financial Inc has prepared some tools and guides to assist you with applying for PPP.

Similar to the first round of PPP, applicants may need to include a variety of supporting documentation during the application process. To make this process easier, Capital Financial Inc has developed a PPP Documentation Recommendations, which you may access here. While an applicant may not need every document outlined, having them available in their PPP documentation file will speed up the application process and, in the event of a future SBA audit, will ensure that documentation is easily accessible.   We encourage you to add supporting documentation in your application when applicable.

Additionally, review our PPP Loan Getting Started Guide, which you may access here, to help walk you through the process to apply online.

To help answer specific questions, a dedicated PPP Care Team stands ready to assist as you begin the application process.

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Capital Financial Inc is a SBA-approved lender, and we are participating in this round of the PPP program. The SBA has been phasing access to all banks and related lending entities, and Capital Financial Inc stands ready to begin accepting applications through our online platform as early as Tuesday, January 19. Existing PPP Borrowers will receive an email invitation to apply beginning Tuesday, January 19.

Your business is eligible if you were operating prior to February 15, 2020, you had employees for whom there was paid salaries/payroll tax/contractors, you experienced a 25% decrease in revenue for one quarter in 2020 compared to 2019, and you meet any one of the following criteria:

• A small business with fewer than 300 employees (includes part-time employees as well)
• A small business that otherwise meets the SBA’s size standard (Up to 500 employees)
• A 501(c)(3) or 501(c ) 6 with fewer than 300 employees
• A faith-based organization with 150 employees or less
• An individual who operates as a sole proprietor
• An individual who operates as an independent contractor
• An individual who is self-employed who regularly carries on any trade or business
• Legal gaming companies with under 300 employees
• A Tribal business concern that meets the SBA size standard
• Housing cooperatives with 300 employees or less
• A 501(c)(19) Veterans Organization that meets the SBA size standard

Please refer to SBA PPP website for more information on eligibility requirements.

Your business is eligible if you were operating prior to February 15, 2020, you had employees for whom there was paid salaries/payroll tax/contractors, you have not previously received a PPP loan, and you meet any one of the following criteria:

• A small business with fewer than 500 employees (includes part-time employees as well)
• An individual who operates as a sole proprietor
• Independent contractors and self-employed persons
• 501(c)3 nonprofits, 501(c)(19) veterans organizations or Tribal business concerns affected by COVID-19, and certain news organizations may apply for a covered loan.
• Housing cooperatives, eligible 501(c)(6) organizations, and eligible destination marketing organizations qualify if they employ 300 or fewer employees.

Please refer to SBA PPP website for more information on eligibility requirements.

• If you are in the hospitality or food services sector (primary business is NAICS code of 72), the 300-employee rule is applied on a per physical location basis.
• If you are operating as a franchise or receive financial assistance from an approved Small Business Investment Company, the normal affiliation rules do not apply.
• Priority for processing will be given to businesses in under-served and rural markets, veterans-owned businesses, economically disadvantage owners, and businesses that are less than two years old.
• Capital from an employee stock ownership plan (ESOP) does not trigger the application of affiliate rules.

• Publicly traded businesses and entities affiliated with the People’s Republic of China
• Businesses that have closed and have no intention of reopening after receiving a PPP loan
• Lenders or financial services business, including hedge funds and investment firms, unless a Community Development Financial Institution (CDFI) or Minority Depository Institutions (MDI)
• Cannabis or other businesses that traffic in goods or services illegal at the Federal level
• Businesses that have defaulted on SBA or Federal loans
• Lobbying organizations or organizations involved in political activities or public policy
• Any business that is at least 20% owned by someone currently incarcerated, on probation, parole, subject to indictment or convicted of a felony within the last five years
• Registrants under the Foreign Agents Registration Act
• Entities that have received or will receive a grant under the Shuttered Venue Operator Grant program
• 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

Please refer to SBA PPP website for more information on eligibility requirements.

Eligible businesses will need to meet the following criteria:

• The business or non-profit was in operation as of February 15, 2020.
• You are business with employees, an independent contractor, or a sole proprietor.
• The impact of the COVID-19 pandemic makes the loan request necessary to support ongoing operations.
• You will use the loan proceeds to retain workers and maintain payroll or make healthcare, mortgage, lease, and utility payments or for expenses required to keep the business in operation to include computing, data, accounting, and costs associated with keeping workers and customers safe from COVID-19.
• You do not have an application pending for a similar loan with another institution.

For employers, Permitted Payroll Costs will include any compensation with respect to an employee that is:

• salary, wage, commission, or similar compensation;
• payment of cash tip or equivalent;
• payment for vacation, parental, family, medical, or sick leave;
• allowance for dismissal or separation;
• payment required for the provisions of group health care benefits, including insurance premiums;
• payment of any retirement benefit; and;
• payment of state or local tax assessed on the compensation of the employee.

If you are a sole proprietor, independent contractors or self-employed individual, then take the wage, commission, income, net earnings from self-employment, or similar compensation that is not more than $100,000 in one year as pro-rated for your designated covered period.

Please refer to SBA PPP website for more information on payroll costs.

Subtracted from the Permitted Payroll Costs are the Excluded Payroll Costs which are defined as:

• Compensation of an individual employee in excess of an annual salary of $100,000, as pro-rated for the period February 15, to June 30, 2020.
• Payroll taxes, railroad retirement taxes, and income taxes
• Any compensation of an employee whose principal place of residence is outside of the United States
• Qualified sick leave wages for which a credit is allowed under section 7001 of the Families First Coronavirus Response Act (Public Law 116–5 127); or qualified family leave wages for which a credit is allowed under section 7003 of the Families First Coronavirus Response Act.

Please refer to SBA PPP website for more information on payroll costs.

Within the appropriated $284 billion, there are certain allocations to help specific businesses. There is a strong demand for PPP loans. Thus, we suggest you promptly apply as there is no assurance that Congress will authorize additional loan funds. $35 billion is targeted at first time PPP loans, with $15 billion of that to businesses with ten or fewer employees or with loans less than $250,000 in low-income areas. In addition, $25 billion of the new PPP funding is set aside for Second Draw Loans to businesses with ten or fewer employees or for loans less than $250,000 in low-income areas.