Answers to Your SBA Loan Questions

If you’re a small business owner applying for a Small Business Association (SBA) Paycheck Protection Program (PPP), you may have questions calculating your loan amount and finding a bank for the application submittal. Entrepreneur has guidelines to help you through the process.

First, the loan amount is determined by taking your company’s average monthly payroll over the prior 12-month period and multiplying that by 2.5. You will obtain 2.5 times your average monthly payroll.

As most business owners prefer to work with a bank they already have a working relationship with, you may be playing a waiting game. Many large banks have yet to launch their PPP application, which is frustrating as many small-business owners are worried that the US$350 billion funded by Congress for the loans will run out. Most of the banks are planning to complete the loan process entirely online and will initially only work with their existing customers.