THE PREFERRED BROKER FOR SBA-PPP LOANS
THOUSANDS OF PPP LOANS ALREADY APPROVED!
Update: May 5, 2020
If you have not applied or have not yet been approved for an SBA PPP loan, apply by clicking the button below.
Note: Eastern Union is not able to provide guidance or assistance with any matters related to PPP loan forgiveness. Please consult an attorney or accountant.
If you have any questions, please email firstname.lastname@example.org
We are advising everybody who has previously submitted a SBA-PPP application through Kabbage to continually check your Kabbage Application Dashboard for updates being posted. You may only receive certain notifications on the dashboard, and not via email.
Failure to monitor the dashboard frequently and act on the updates, which may include requests for additional documentation, can possibly jeopardize your loan from being funded.
You may also try calling Kabbage directly for a manual review of your application readiness. Please keep in mind they are experiencing an extremely high call volume.
Kabbage Support: 888-351-3143
Mon – Fri: 8 a.m. – 9 p.m.
Sat – Sun: 10 a.m. – 6 p.m.
If your status is still not yet approved, you can try applying through this link which may be approved before your pending application. Click Here To APPLY NOW
CURRENT SBA-PPP LOAN STATUS: PHASE 2
The SBA-PPP loan program has been overwhelmingly successful. Thousands of loans were approved and many clients received funds. The faster your loan application is submitted, the greater chance you have of getting funded. Click Here To APPLY NOW
EXPEDITING LOAN APPLICATIONS
As anticipated, numerous clients have reached out and asked that we expedite the funding process. Eastern Union and Cross River Bank are both working expeditiously to help the many applicants obtain this loan. Naturally, there are many obstacles that we are traversing and solving as the process moves forward.
The reality of such an unprecedented situation complicates things. This is a government-backed program and we must adjust to the realities, and frequently changing guidelines, by the hour. The government does things without requesting input from people in the trenches -- from the brokers, to the lenders, to the applicants. The result is that some loan applicants end up ahead of others in the queue for no specific reason -- simply as unintended beneficiaries of last-minute government changes.
STILL WAITING FOR APPROVAL?
If you did not already receive an approval saying your loan was approved by SBA or issued an E-TRAN number -- you may want to fill out a new application with this link. Click Here To APPLY NOW
MUST YOU REALLY APPLY AGAIN?
You may be wondering why you would consider applying again if you've already applied for an SBA-PPP loan. The answer is that as SBA guidelines change, banks are upgrading their application process. The link we are providing on this page can in many cases get an approval faster than current loan applications that are pending.
There has been a lot of talk about forgiveness. Many of these guidelines are still being adjusted and not an area Eastern Union specializes in. If you require guidance regarding forgiveness, we advise you to speak with a trained accountant or lawyer regarding all forgiveness related issues.
For those of you who were not part of the many applicants approved through Eastern Union, we genuinely understand your concern, and ask that you take the above into account and reapply for your SBA-PPP loan with this link: Click Here To APPLY NOW
CHOOSING OTHER LENDERS
We pledge to do everything possible to help you obtain your loan from the second round of SBA-PPP funding being released. As stated originally: If you deal with a bank providing SBA-PPP loans, and the bank is taking applicants, apply directly with that bank. However, as the article above indicates, the outcome may not necessarily be faster or better.
PASSING IT ALONG
If you know of anyone still in need of a SBA-PPP loan, please be sure to share this link with them:
On behalf of Eastern Union -- stay healthy, stay safe, and stay positive!
Mobile: (917) 597-2197
SUBSCRIBE FOR UPDATES
A NOTE ABOUT EIDL LOANS
Eastern Union is focusing only on FORGIVABLE SBA-PPP LOANS. If you are seeking Economic Injury Disaster Loan (EIDL) funding -- a type of UNFORGIVABLE LOAN that can provide up to $2 million in funding for fixed business costs -- click here.
Eastern Union is not affiliated with ELEVATE and this is for informational purposes only.
Why choose Eastern Union as your Preferred Broker for obtaining the SBA-PPP loan?
You can apply for the SBA-PPP loan at any bank. Eastern Union, however, is a Preferred Broker. There is no cost whatsoever to have Eastern Union represent you. We will tap into our powerful network of banking resources to cut through the red tape and make your loan approval process faster and simpler.
IMPORTANT: The SBA-PPP loan program guidelines are being released and subject to change. Eastern Union will be updating this website frequently. Be sure to revisit our FAQ section for the latest updates. If you have a specific question not addressed in this FAQ section, email email@example.com and the SBA-PPP loan team will reply.
Click here to download the SBA's official rules for SBA PPP loans >>>
Frequently Asked Questions
WHAT IS THE SBA-PPP LOAN PROGRAM?
On March 27, 2020, the President signed the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act to provide emergency assistance and health care response for individuals, families, and businesses affected by the coronavirus pandemic. The Small Business Administration (SBA) received funding and authority through the Act to modify existing loan programs and establish a new loan program to assist small businesses nationwide adversely impacted by the COVID-19 emergency.
Among the provisions contained in the CARES Act are provisions authorizing SBA to temporarily guarantee loans under a new loan program titled the “Paycheck Protection Program.” Loans guaranteed under the Paycheck Protection Program (PPP) will be 100 percent guaranteed by SBA, and the full principal amount of the loans may qualify for loan forgiveness.
MUST I APPLY FOR THE LOAN THROUGH EASTERN UNION?
While you can apply for this loan at any bank or on the SBA website, the skilled SBA-PPP loan specialists at Eastern Union can tap into a vast network of existing banking resources to cut through the red tape, and make your loan approval faster and simpler.
ARE THERE DIFFERENT LOAN TYPES?
IS THERE A FEE TO USE EASTERN UNION TO OBTAIN A LOAN?
There are no fees or costs for the borrower at all. Eastern Union can help -- at no cost to you whatsoever -- you apply, process, and obtain funding with the SBA-PPP loan. We may receive payment from the lender once the loan is processed -- but there are no charges or fees at all for you.
HOW MUCH SBA-PPP LOAN FUNDING CAN I RECEIVE?
The technical details are still being finalized by the SBA -- but you can qualify for a loan for up to 2.5 times your average monthlly payroll expense -- for W2 wages -- based on an average of your monthly payroll.
CAN I USE SBA-PPP LOAN FUNDING FOR ANY EXPENSE?
The money obtained through the SBA-PPP loan may to be used for specific expenses such as: payroll, mortgage interest, rent, utilities, and healthcare benefits.
IS THE LOAN PROGRAM ACTIVE RIGHT NOW?
The Small Business Administration (SBA) launched the SBA-PPP loan product and all approved banks are currently processing SBA-PPP loans.
MUST I PAY BACK THE LOAN IN FULL?
The loan has a potential forgiveness option. This will depend on numerous factors, which are still being finalized, such as: (a) the use of the proceeds of the current loan; and (b) your payroll amount on June 1st in comparison to the payroll as of February 1st, 2020.
WHAT DOCUMENTATION MUST I SUBMIT?
The following items are potentially being required to be submitted for documentation:
List of owners (or organizational chart)
Most recent business tax return
Business debt schedule
Most recent payroll receipts
2019 payroll summary
2020 payroll summary through 02/15/2020
WHAT TYPE OF BUSINESS IS ELIGIBLE FOR THE SBA-PPP LOAN?
You are eligible for a PPP loan if you have 500 or fewer employees whose principal place of residence is in the United States, or are a business that operates in a certain industry and meet the applicable SBA employee-based size standards for that industry, and are:
A small business concern as defined in section 3 of the Small Business Act (15 USC 632), and subject to SBA’s affiliation rules under 13 CFR 121.301(f) unless specifically waived in the Act;
B. A tax-exempt nonprofit organization described in section 501(c)(3) of the Internal Revenue Code (IRC), a tax-exempt veterans organization described in section 501(c)(19) of the IRC, Tribal business concern described in section 31(b)(2)(C) of the Small Business Act, or any other business; and
ii. You were in operation on February 15, 2020 and either had employees for whom you paid salaries and payroll taxes or paid independent contractors, as reported on a Form 1099-MISC.
HOW DO I APPLY FOR A SBA-PPP LOAN WITH EASTERN UNION?
Eastern Union can help you with any SBA-PPP application questions, track the entire loan process for you, and expedite your application approval through our unique Cross River Bank partnership.
The faster your loan application is submitted, the greater chance you have of getting funded. Apply now: https://partner.kabbage.com/sba-eastern-union-crb
If you have any questions, please contact our SBA-PPP advisors by emailing firstname.lastname@example.org or by calling us at 732-408-3970.
WHEN SHOULD I APPLY FOR A SBA-PPP LOAN?
The intent of the PPP Loan Act is that the SBA provides relief to America’s small businesses expeditiously. The last day to apply for and receive a loan is June 30, 2020. The immediate effective date of this interim final rule will benefit small businesses, so that they can immediately apply for the loan with a full understanding of loan terms and conditions. You can apply by clicking here.
WHAT IF I AM A SOLE PROPRIETORSHIP OR AN INDEPENDENT CONTRACTOR?
You are also eligible for a PPP loan if you are an individual who operates under a sole proprietorship or as an independent contractor or eligible self employed individual, you were in operation on February 15, 2020. You must also submit such documentation as is necessary to establish eligibility such as payroll processor records, payroll tax filings, or Form 1099- MISC, or income and expenses from a sole proprietorship. For borrowers that do not have any such documentation, the borrower must provide other supporting documentation, such as bank records, sufficient to demonstrate the qualifying payroll amount.
WHO IS NOT ELIGIBLE FOR A SBA-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 incarcerated, on probation, on parole; 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 a felony within the last five years.
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.
I HAVE DETERMINED THAT I AM ELIGIBLE. HOW MUCH CAN I BORROW?
Under the PPP, the maximum loan amount is the lesser of $10 million or an amount that you will calculate using a payroll-based formula specified in the Act, as explained below. The following methodology, which is one of the methodologies contained in the Act, will be most useful for many applicants.
Step 1: Aggregate payroll costs from the last twelve months for employees whose principal place of residence is the United States
Step 2: Subtract any compensation paid to an employee in excess of an annual salary of $100,000 and/or any amounts paid to an independent contractor or sole proprietor in excess of $100,000 per year
Step 3: Calculate average monthly payroll costs (divide the amount from Step 2 by 12)
Step 4: Multiply the average monthly payroll costs from Step 3 by 2.5
Step 5: Add the outstanding amount of an Economic Injury Disaster Loan (EIDL) made between January 31, 2020 and April 3, 2020, less the 9 amount of any “advance” under an EIDL COVID-19 loan
WHAT QUALIFIES AS “PAYROLL COSTS?”
Payroll costs consist of 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 coverage, including insurance premiums, and retirement; payment of state and local taxes assessed on compensation of employees; and for an independent contractor or sole proprietor, wage, commissions, income, or net earnings from self-employment or similar compensation.
IS THERE ANYTHING EXCLUDED FROM THE DEFINITION OF PAYROLL COSTS?
Excluded from the definition of 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 an annual salary of $100,000, prorated as necessary
- Federal employment taxes imposed or withheld between February 15, 2020 and June 30, 2020, 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
- Qualified sick and family leave wages for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act
WHAT IS THE INTEREST RATE ON A PPP LOAN?
The interest rate will be 100 basis points or one percent. The Administrator, in consultation with the Secretary, determined that a one percent interest rate is appropriate. First, it provides low cost funds to borrowers to meet eligible payroll costs and other eligible expenses during this temporary period of economic dislocation caused by the coronavirus. Second, for lenders, the 100 basis points offers an attractive interest rate relative to the cost of funding for comparable maturities. For example, the FDIC’s weekly national average rate 12 for a 24-month CD deposit product for the week of March 30, 2020 is 42 basis points for non-jumbo and 44 basis points for jumbo. Third, the interest rate is higher than the yield on Treasury securities of comparable maturity. For example, the yield on the Treasury two-year note is approximately 23 basis points. This higher yield combined with the fact that the loans are 100 percent guaranteed by the SBA and the fact that lenders will receive a substantial processing fee from the SBA provide ample inducement for lenders to participate in the PPP.
WHAT WILL BE THE MATURITY DATE ON A PPP LOAN?
The maturity is two years. While the Act provides that a loan will have a maximum maturity of up to ten years from the date the borrower applies for loan forgiveness (described below), the Administrator, in consultation with the Secretary, determined that a two year loan term is sufficient in light of the temporary economic dislocations caused by the coronavirus. Specifically, the considerable economic disruption caused by the coronavirus is expected to abate well before the two year maturity date such that borrowers will be able to recommence business operations and pay off any outstanding balances on their PPP loans.
CAN I APPLY FOR MORE THAN ONE PPP LOAN?
No. The Administrator, in consultation with the Secretary, determined that no eligible borrower may receive more than one PPP loan. This means that if you apply for a PPP loan you should consider applying for the maximum amount. While the Act does not expressly provide that each eligible borrower may only 13 receive one PPP loan, the Administrator has determined, in consultation with the Secretary, that because all PPP loans must be made on or before June 30, 2020, a one loan per borrower limitation is necessary to help ensure that as many eligible borrowers as possible may obtain a PPP loan. This limitation will also help advance Congress’ goal of keeping workers paid and employed across the United States.
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. That is, the borrower will not be responsible for any loan payment if the borrower uses all of the loan proceeds for forgiveable purposes described below and employee and compensation levels levels are 14 maintained. The actual amount of loan forgiveness will depend, in part, on the total amount of payroll costs, payments of interest on mortgage obligations incurred before February 15, 2020, rent payments on leases dated before February 15, 2020, and utility payments under service agreements dated before February 15, 2020, over the eight-week period following the date of the loan. However, not more than 25 percent of the loan forgiveness amount may be attributable to nonpayroll costs. While the Act provides that borrowers are eligible for forgiveness in an amount equal to the sum of payroll costs and any payments of mortgage interest, rent, and utilities, the Administrator has determined that the non-payroll portion of the forgivable loan amount should be limited to effectuate the core purpose of the statute and ensure finite program resources are devoted primarily to payroll. The Administrator has determined in consultation with the Secretary that 75 percent is an appropriate percentage in light of the Act’s overarching focus on keeping workers paid and employed. Further, the Administrator and the Secretary believe that applying this threshold to loan forgiveness is consistent with the structure of the Act, which provides a loan amount 75 percent of which is equivalent to eight weeks of payroll (8 weeks / 2.5 months = 56 days / 76 days = 74 percent rounded up to 75 percent). Limiting non-payroll costs to 25 percent of the forgiveness amount will align these elements of the program, and will also help to ensure that the finite appropriations available for PPP loan forgiveness are directed toward payroll protection. SBA will issue additional guidance on loan forgiveness.
WHAT HAPPENS IF PPP LOAN FUNDS ARE MISUSED?
If you use PPP funds for unauthorized purposes, SBA will direct you to repay those amounts. If you knowingly use the funds for unauthorized purposes, you will be subject to additional liability such as charges for fraud. If one of your shareholders, members, or partners uses PPP funds for unauthorized purposes, SBA will have recourse against the shareholder, member, or partner for the unauthorized use.
I STILL HAVE QUESTIONS ABOUT THIS PROGRAM. WHO CAN ADVISE ME?
If you have any questions or want to talk directly with a SBA-PPP specialist, please contact our SBA-PPP team by emailing email@example.com or by calling 732-408-3970.
THE CARES ACT EXCLUDES FROM THE DEFINITION OF PAYROLL COSTS ANY EMPLOYEE COMPENSATION IN EXCESS OF AN ANNUAL SALARY OF $100,000. DOES THAT EXCLUSION APPLY TO ALL EMPLOYEE BENEFITS OF MONETARY VALUE?
No. The exclusion of compensation in excess of $100,000 annually applies only to cash compensation, not to non-cash benefits, including:
· employer contributions to defined-benefit or defined-contribution retirement plans;
· payment for the provision of employee benefits consisting of group health care coverage, including insurance premiums; and
· payment of state and local taxes assessed on compensation of employees.
DO SBA-PPP LOANS COVER PAID SICK LEAVE?
Yes. PPP loans covers payroll costs, including costs for employee vacation, parental, family, medical, and sick leave. However, the CARES Act excludes 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). Learn more about the Paid Sick Leave Refundable Credit here.
SHOULD PAYMENTS THAT AN ELIGIBLE BORROWER MADE TO AN INDEPENDENT CONTRACTOR OR SOLE PROPRIETOR BE INCLUDED IN CALCULATIONS OF THE ELIGIBLE BORROWER’S PAYROLL COSTS?
Any amounts that an eligible borrower has paid to an independent contractor or sole proprietor should be excluded from the eligible business’s payroll costs. However, an independent contractor or sole proprietor will itself be eligible for a loan under the PPP, if it satisfies the applicable requirements.
DOES MY BUSINESS HAVE TO QUALIFY AS A "SMALL BUSINESS CONCERN" (AS DEFINED IN SECTION 3 OF THE SMALL BUSINESS ACT) IN ORDER TO PARTICIPATE IN THE PPP?
No. In addition to small business concerns, a business is eligible for a PPP loan if the business has 500 or fewer employees whose principal place of residence is in the United States, or the business meets the SBA employee-based size standards for the industry in which it operates (if applicable). Similarly, PPP loans are also available for qualifying tax-exempt nonprofit organizations described in section 501(c)(3) of the Internal Revenue Code (IRC), tax-exempt veterans organization described in section 501(c)(19) of the IRC, and Tribal business concerns described in section 31(b)(2)(C) of the Small Business Act that have 500 or fewer employees whose principal place of residence is in the United States, or meet the SBA employee-based size standards for the industry in which they operate.
WHAT TIME PERIOD SHOULD BORROWERS USE TO DETERMINE THEIR NUMBER OF EMPLOYEES AND PAYROLL COSTS TO CALCULATE THEIR MAXIMUM LOAN AMOUNTS?
In general, borrowers can calculate their aggregate payroll costs using data either from the previous 12 months or from calendar year 2019. For seasonal businesses, the applicant may use average monthly payroll for the period between February 15, 2019, or March 1, 2019, and June 30, 2019. An applicant that was not in business from February 15, 2019 to June 30, 2019 may use the average monthly payroll costs for the period January 1, 2020 through February 29, 2020. Borrowers may use their average employment over the same time periods to determine their number of employees, for the purposes of applying an employee-based size standard. Alternatively, borrowers may elect to use SBA’s usual calculation: the average number of employees per pay period in the 12 completed calendar months prior to the date of the loan application (or the average number of employees for each of the pay periods that the business has been operational, if it has not been operational for 12 months).
EASTERN UNION OFFICES
Copyright © 2020. Eastern Union Funding, LLC. All rights reserved.