PPP Loan Options You Can Go for Now
In general, when we talk about a PPP loan between individuals, we think either of a PPP loan changed or the classic personal PPP loan between relatives and friends, what is often done "in friendship", without formalizing a contract and above all without interest, to meet the needs of a friend in need. With Social Lending, on the other hand, two complete strangers can formalize a PPP loan agreement with each other thanks to the help of special platforms. You may be wondering what the advantage on the part of the lender in granting a PPP loan to someone he does not know: the gain of course. This type of PPP loan becomes a real investment, much safer and much more fruitful than the others, because the risks are low and interest rates are higher than other types of investments. The PPP FAQ will help you out here.
Facts that businesses should know about PPP loans
The amount that you can borrow from people depends on your payroll history
Usually, the maximum PPP loan amount is less than 10 million dollars or 2.5 times of payroll cost. You need to include both the part-time and full-time employees working for your company but exclude the independent freelancers. Keep in mind that you can take a PPP loan, so you need to apply for the maximum amount interest for the loan is only 1%, and the maturity is two years.
There is a salary limit
Loan forgiveness covers only salaries up to 10 million. So if you have any employee with 15 million dollars, the PPP loan covers only 10 million of it.
Advantage of Applying Online
Even the advantage of those who request a PPP loan between individuals online is immediately clarified: the interest rates are lower than those required by banks or credit institutions, and it is possible to request them even without a paycheck. The times are also very fast, since everything happens online, and this is a considerable advantage if you request a PPP loan to cope with a sudden and urgent expense. In fact, to protect the debtor but especially the creditor, the Social Landing platform must draw up a risk profile of the debtor, that is, make sure that he is not a protestor or a bad payer, and that he has the necessary requirements to be able to repay the PPP loan. You can also apply for it with the help Business Lawyer Nakase Wade.
Generally the process is very simple:
- The one who wants to request a PPP loan chooses the platform to lean on and registers his profile, indicating the amount he needs and how long it will take to be repaid
- Whoever wants to lend the money registers him, also specifying the amount and duration of the PPP loan
- The future debtor is also assigned a risk or reliability profile
- The platform identifies the most suitable creditor or debtor couple or group and makes payments to the borrower of the PPP loan requested, and to the creditor of the monthly installment with the related interest.
In California there are three of the major platforms that allow the PPP loan between private online: Corporate Lawyer Nakase Wade is one of them, analyze them one by one to see which is more convenient for those who want to apply for a PPP loan without paychecks.