Paycheck Protection Program FAQs

Frequently Asked Questions about the $350 billion SBA Loan program

What is the Paycheck Protection Program (PPP)?

The PPP is a low interest loan program found in the CARES Act that enables private lenders to make loans to small business during the COVID-19 crisis. These loans will be guaranteed by the SBA, who also has delegated authority to such lenders to approve small business applications with no separate SBA approval.

When can Businesses Apply?

Application started on April 3, 2020 and will be available until June 30, 2020. Keep in mind that the total amount available for loans may be exhausted before the deadline, so applying early increases your chances of getting a PPP loan.

Independent contractors and self-employed individuals are able to apply starting on April 10, 2020.

Who is Eligible to Apply?

Any business, tribal business, non profit organization or veterans organization that has fewer than 500 employees. (Full time, part-time or employed on any other basis)

The SBA size standard may accommodate a business with more than 500 if it is under the SBA table for standard small business size: SBA Table

Sole proprietors, independent contractors, and self-employed individuals with a trade or business service, which includes the “gig economy.”

You must have been in business prior to February 15, 2020.

Other qualifications include being current on other SBA loans (if any), the business or owner is not suspended or ineligible by any Federal department, the owner is subject to an indictment, and the owner has not had a felony in the past 5 years.

Where can I apply?

Follow the link below to apply for a PPP loan. Note that if you have applied for a PPP loan already, you should refrain from applying again.

Idea Financial is not an authorized lender for the U.S. Small Business Administration’s (SBA) Paycheck Protection Program at this time. Idea Financial will connect you with SBA approved lenders. Your loan agreement will identify your lender prior to your signature. Any loan made under SBA’s Paycheck Protection Program must also be submitted to and approved by the SBA.

What are the benefits of the PPP Loan?

  • Loan size amount of 2.5 times the average total monthly payroll costs (up to $10 million)
  • Fixed interest rate of 1%
  • Loan term of 2 years
  • Payments will be differed for a six month period, but interest will continue to accrue during that deferment period. (Some borrowers may qualify for 12 month deferment)
  • Loans proceeds are forgiven if used during the 8 week period after the the date the loan was made and for the following purposes:
    • Payroll costs (capped at $100,000 per year per employee)
    • Group healthcare benefits
    • Rent payments
    • Utilities
    • Mortgage interest
    • Interest on debt incurred prior to February, 15 2020

Can the PPP loan be used for other purposes than non-payroll cost?

Yes, however for you to receive loan forgiveness on your expenses, 75% most go to payroll-costs and the remaining 25% are allowed nor non-payroll cost expenses.

The SBA will provide additional guidelines for loan forgiveness.

What information do I need to provide when applying?

  • Loan application
  • Borrower certification required by the SBA
  • Payroll filings, state income, unemployment insurance filings and IRS Form 1099-MISC.
  • Good faith certification stating the loan will be used to support your business operations.
  • Your SBA lender will direct you to any other supporting documentation you may need.

How can I request loan forgiveness?

You can submit a request to your lender that is servicing the loan. The request will include documents that verify the number of full-time equivalent employees and pay rates, as well as the payments on eligible mortgage, lease, and utility obligations.

You are required to provide additional information to your lender such as:

  • Certification that the amount requested to be forgiven was used in accordance to SBA guidelines.
  • Documents that verify employee payroll and pay rates, IRS payroll tax filings, state income, payroll and unemployment filings.
  • Documents that verify lease obligations and utilities payments
  • Documents verifying mortgage and other debt interest obligations

Loan forgiveness will be provided for the sum of documented payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities.

Your SBA lender must make a decision within 60 days of the loan forgiveness request.

When do I need to start paying interest on my loan?

All payments are deferred for 6 months; however, interest will continue to accrue over this period

Can I pay my loan earlier than 2 years?

Yes. There are no prepayment penalties or fees.

Does the PPP loan require collateral or personal guarantee?

No, lenders may not require the borrower any collateral or a personal guaranty.

How Fast Can I Get a Loan?

The timing for loan may depend on your specific business and the documentation required by the lender. Once processed and approved, the lender should give you an approximate timetable for the you will receive the funds.

The standards that the legislation put forth are designed for fast approval, but keep in mind the high demand at the moment and funds are limited.

What is the difference between the PPP and an Economic Injury Disaster Loan (EIDL)?

The PPP enables organizations to obtain up to $10 million in loans that are 100 percent forgivable if they meet the criteria outlined above.

The Economic Injury Disaster Loan Program (EIDL) is a disaster relief loan which includes a $10,000 grant that businesses do not need to pay back. The EIDL loan caps out at $2 million and it is not forgivable but may cover other expenses that the PPP does not allow.

Aside from the basic specifications of each, these programs have different application processes, terms, interest rates, and eligibility requirements. For more info on EIDL, click here.

The CARES Act for Small Businesses

Last updated on 4/3/2020 with:

Update: Payment Protection Program: Application Form

The Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, passed the Senate on March 25, the House on March and signed by President Trump on March 27. There are several aspects that affect a range of beneficiaries such as small businesses, large corporations and individuals. This post will be focusing on the small business side of the CARES Act.  Please note that the below information is subject to change as updates come in.

$2 trillion dollars is the amount that makes up the coronavirus response bill to help relief the American economy. $367 billion are destined to small businesses; this is then subdivided in $350 billion on new loans and $17 billion destined for existing loans.

These loans will be classified under type 7(a) loans category, which is the primary program for providing financial assistance to small businesses.

There are 2 key features that are essential to small businesses:

  1. Paycheck Protection Program: $350 billion will be distributed by the Small Business Administration to provide loans of up to $10 million dollars per business. Portions of that loan maybe forgiven provided workers stay employed.  Some of such forgivable loan portions would include salaries, paid sick and medical leave, mortgage interest, rent and utility payments for an 8-week period.
  2. Existing Loan Relief: There is a $17 billion dollar provision in which SBA is required to pay all principle, interest and fees on all existing SBA loan products, including 7(a), Community Advantage, 504 and Microloan programs for six months.


The CARES Act defines who is eligible for relief as businesses, nonprofits, veteran’s organizations and tribal businesses of up to 500 employees and it also includes the self-employed, independent contractors and sole proprietors. Some businesses that have more than 500 employees may be eligible under the SBA industry size standard allowance.

Find the SBA’s table for Small Business Size Standards here.

For lenders to determine eligibility, small businesses must demonstrate that they were operational as of March 1, 2020 and had employees for whom it paid salaries and payroll taxes. This requirement was included as it is not possible to determine repayment ability during the crisis.

From what we have gathered in the Bank of America portal, banks may ask for other requirements unique to them. This is a subject that is still up in the air, but it is important to call or check your local bank’s website to see what requirements are listed.

Economic Injury Disaster Loans

The CARES Act impacts the Economic Injury Disaster Loans (EIDL) program. It calls for expedited access to capital by allocating $10 billion so that businesses that have applied to EIDL loans can request an advance of up to $10,000. These funds would be used for paid sick leave, maintaining payroll and covering other business operations.

Application Process

As we wait for the CARES Act to have a formal application guideline, we can assume that the application process will be similar to that of other SBA loans.

For a detailed guide on the CARES act please visit the U.S. Senate Committee on Small Business and Entrepreneurship’s guide for small business owners here: Small Business Owner’s Guide to the CARES Act

You can help your business by using the the checklist made by the Chamber of Commerce and by contacting your local banking institution. Find the guide and checklist here: Coronavirus Emergency Loans Small Business Guide and Checklist.

You can help yourself prepare by using this checklist from the Chamber of Commerce and contacting your local lender. 

Payments and Fees

CARES Act waives both borrower and lender fees on all 7(a) loans, it also creates an automatic deferment of payments up to one year, and no prepayment penalties.

The CARES Act covers other aspects of the economy as well. Read more here.

Idea Helps – Small Business Relief


Last updated on 4/3/2020 with:

As our nation comes to terms with the consequences of COVID-19, we at Idea Financial hold true to our values and to our belief that there is a symbiosis that connects us all. Therefore, we will not only work together with our clients, partners and employees, but also try to provide relevant information to help everyone navigate through these trying times. Below you will find information about business and employee relief efforts, which we hope alleviates the adverse effects of COVID-19 and its implications for all.

Over the coming days we will be updating the information below, as well as featuring, in our social media channels and blog, how fellow business owners are adapting to this situation.

For customer assistance contact us at (855) 900-7838 or email

National Relief for Businesses

In order to slow the spread of coronavirus, many states opted to cancel school, gatherings and events of all sizes. Small businesses and individuals have followed suit, creating an absenteeism that increases financial strains.  President Trump has instructed the Small Business Administration to extend relief loans to help small businesses overcome temporary economic disruptions. A national emergency was declared in order to infuse another $50 billion into the economy and help affected businesses.  More relief efforts are on the table and/or pending legislative and executive approval. Some of these efforts include the following, check back for more updates daily:


SBA economic loans for businesses statewide will provide working capital loans of up to $2 million under the Economic Injury Disaster Loans (EIDL) program. If your business is suffering a drop in sales, lack enough funds to cover business expenses like payroll, fixed debts or accounts payable, this an option that can help your business keep afloat.


The Senate passed a $2 trillion aid package to address the COVID-19 situation. Notable provisions include a $1,200 check for most Americans, higher unemployment insurance payouts, and the “Paycheck Protection Program”, which allocates up to $10 million per small business to cover payroll, rent and utilities.

Tax payment deferrals

Income tax payment deferment is another financial relief benefit for both businesses and individuals. Sole proprietors, single-member LLCs and Corporations have their business tax return deadline on April 15. The Treasury Department and IRS extended such deadline for businesses negatively impacted by the Coronavirus, penalty free, for 90 days. For more info, visit the IRS Coronavirus Tax Relief page.

Payroll tax credits

Payroll tax credits are on the legislative table. As a bill proposing federally mandated paid sick leave and benefits passed in the House and is now in the Senate; it would require employers to provide paid sick leave to eligible employees for 14 days. To counter this financial strain on small businesses, the House approved a business tax credit for the same amount incurred during this time.


As Coronavirus affects more businesses, it affects the employees who make up those businesses. The federal government has also prepared legislation to relieve employees during this difficult time. Find information in the following links:

Center for Disease Control

As we all learn what are our options to cope during these difficult times, it is important to have in mind that our individual actions affect everything around us too. We would like to promote information from the professionals at the forefront of this pandemic and share the following link to the Center for Disease Control and Prevention: CDC

Ask not for a lighter burden, but for broader shoulders.


As the procedures, requirements and new information is not widely available, we are answering some pertinent questions with regards to the whole EIDL process, information for other funding options and suggestions on how to cope with the consequences of COVID-19.

Who is eligible for Economic Injury Disaster Loans?

Only small businesses that are in counties approved by the SBA and that are considered impacted by the Coronavirus are offered the potential relief. First thing small business owners should do is go to the local county website or contact your county officials with regards to the status of the Economic Loss Declaration. Once the SBA has approved and declared it an affected county, then economic injury assistance will become available. Once available, try to apply a soon as possible as SBA staff will most likely be dealing with a surge in applications.

To be eligible, a business must meet the definition of “small,” which depends on the industry the business is in.

For example:

  1. Wholesale trade: Maximum number of employees must range between 100 and 250.
  2. Real Estate offices agents and brokers: Maximum $8.0 million dollars in annual receipts.
  3. Full-service restaurant: Maximum $8.0 million dollars in annual receipts.

For the complete table, visit the SBA website, call the SBA at 1-800-659-2955 or see this PDF here: Table of Small Business Size Standards

Where can I apply for an EIDL??

Apply online here. It will require the creation of an online account with which you can track the status of your application.

What amount of capital will be available for assisting a small business?

The maximum loan amount offered in the current program is $2 million. You may apply for an EIDL for the amount of the economic injury and operating needs of the business, but the amount must not exceed what your business could have earned, had the disaster not occurred.

Are non-profit organizations eligible for EIDL?

Yes, non-profit organizations may apply for EIDL.

What may funds be used for?

Fixed debts, payroll, accounts payable and other bills that can’t be paid as a result of the disaster’s impact.

What are the interest rates and repayment terms?

The interest rates start at 3.75% for small businesses and 2.75 for non-profits.

What are the credit requirements to apply for an EIDL?

The business must have a credit history that is acceptable to the SBA. The business must prove to have the ability to repay all loans. In many cases, collateral is required, but SBA will not decline a loan for lack of collateral, but it may require a pledge. SBA may review financial statements of partners, officers, directors and stockholders. There may be a guarantee required as well.

Are there other organizations that are offering relief to small business due to the Coronavirus pandemic?

Yes, there are different organizations and companies at the national, state and even county and city level.

One option is to contact your local chamber of commerce as they have business that may be affected by the pandemic. You may need to become a member to have access to their services. Find your local chamber: Chamber of Commerce Directory and also the Coronavirus Small Business Guide from the Chamber.

Here are some links to local and corporate relief programs:

These are just some initiatives taken by local governments. Each individual state will most likely create their own plan to specifically address the situation based on their needs. A list of all the state governors websites links can be can be found here.

Other relief sources


Service industry

Inormative Links:

The Idea Financial team will keep updating and adding information as it becomes available. Please contact the SBA if you have further questions with regards to the Economic Injury Disaster Loans program through their page here.

Ask not for an easier path, but for stronger feet.

Idea Financial Bolsters Leadership Team With New COO & General Counsel

MIAMI, Feb. 12, 2020 

Idea Financial, a leading small business lending platform, announces the appointment of Gregory Sandler as Chief Operating Officer (COO) and General Counsel. Sandler has over a decade-long proven track record in the fintech and lending industries. Idea Financial has experienced rapid growth since its launch two years ago and is on the heels of its most robust quarter since inception.

“Expanding our executive team underscores Idea Financial’s evolution and the opportunities ahead,” said Justin Leto, Co-Founder and Chief Executive Officer, Idea Financial. “Greg brings great depth with his extensive background in legal and financial services, and we are thrilled to have him.” 

Co-Founder and President, Larry Bassuk added, “Greg will play a vital role in driving overall operations and ensure that we continue to execute on our mission to fundamentally support small businesses across the U.S. and help them access the critical capital they need to grow.”  

As COO and General Counsel, Sandler will lead day-to-day operations and work closely with Idea Financial’s CEO and President on capital markets, commercial transactional work, strategic planning, and corporate governance, among other key areas. 

“Idea Financial is experiencing accelerated growth with the company’s in-demand products that perfectly align with the needs of small businesses.” Sandler stated. “I look forward to working with this extremely smart and committed team as we continue to fuel the engine of the American economy.”  

Most recently, Sandler was General Counsel and Corporate Secretary at Beyond Finance and Spruce Finance. Earlier in his career, Sandler served as Vice President and Corporate Counsel at Bayview Asset Management, LLC and as a Senior Associate at Clifford Chance US LLP, a large international law firm. He also held in-house counsel roles at Camulos Capital LP and Bear Stearns & Co., Inc. Today, Sandler is an active member of the Miami community, sitting on the University of Miami Citizens Board and speaking as a panelist at various local continuing legal education programs.  

Idea Financial was founded in 2017 and provides SMBs with alternative, fast, reliable and trusted financial options. Idea Financial issued its first loan in January 2018 and, in just two years, the company has originated nearly $100M and has secured a $70M warehouse facility with Cross River Bank, a pioneering provider of banking services for financial technology companies.  

For more information on Idea Financial, please visit:  

About Idea Financial
Idea Financial is a direct small business lender that provides Main Street businesses with trusted and affordable financial options that Charge Businesses Forward. Idea Financial offers a variety of products, such as term loans and lines of credit. Small businesses can apply for and receive up to $250,000 of financing in less than a day. For more information, visit:  

Follow Idea Financial on Twitter, Instagram, Facebook, and LinkedIn @ideafinancial.

Media Contact:
Tracy Rubin
JCUTLER media group

You Know Your Business Best

You know you business better than anyone.

Success for any small business comes from understanding its own cashflow and meeting the capital demands to grow.  If you are a business owner, founder, or key executive, you have learned firsthand the obstacles and difficulties that your business encounters every day. Not all businesses are the same and your needs depend on a variety of factors: industry, seasonality, geographic location, products/services, staffing and even hours of operation. Business financing is not a one size fits all situation and Idea Financial recognizes the need to provide options to our customers.


Businesses looking for financing should have choices. Do you have an immediate project which requires cash today?  Do you have receivables that are net 60, 90, or 120 days?  Do you need access to cash depending upon the time of year?  Each answer may carry with it different needs. For that reason, we will now present qualified customers with multiple offers of our products so you can decide which one works best for your business.

Having different offers to choose from gives your business the liberty to develop a strategy that reflects the return on investment you expect. We will simultaneously show you the offers for our Line of Credit and Term loan.

You can review some of the benefits below:

Line of Credit

  • Free and easy application
  • Flexible – Repay early with no penalties
  • True Revolver – Each payment replenishes the available financing
  • Draw any amount within the available funds whenever you want
  • Only pay for the funds drawn
  • Every new draw receives an amortization for the full balance and a new repayment term
  • Access to your account 24/7

Term Loan

  • Free and easy application
  • Multiple terms available and rates
  • Loan amounts between $10k and $250k
  • No origination fee
  • Repay early with a 50% discount on the remaining interest owed
  • Once the loan has been repaid by 50%, you may be eligible for renewals

Apply within minutes, get approved in hours, and access funds within a day. It is important to have a clear plan to grow your business and with these options, you can plan for what you need.

Let’s Charge Your Business Forward

Start your risk-free application today:


Contact at 1 (855) 955 7838

A Two-way Street

Today we celebrate our funding anniversary. It marks the beginning of a mutual understanding that is basic to our industry yet the most important. The start of a relationship built on trust and calculated risk, between a business that believes it will receive the funds it needs to take the next step which can catapult their business to the next level; and a funder that has analyzed their business model and believes it will grow.

Since our inception we knew that this relationship was special and the success or failure of one would affect the other. With that in mind, we gave birth to our Rhino and Oxpecker logo that symbolizes our core values and understanding of the beneficial relationship.

From the moment our Business Advisors make first contact with any business owner we make sure to understand the whole picture; not just what’s on paper but your values, your needs and objectives.
Coincidently, we try to build relationships that reflects our own values, such as resilience, honesty and innovation.

In our journey we have learned that the road doesn’t come fully paved and there might be some rocks and potholes in the way. By internalizing these lessons, we have grown to understand we must also be nimble for situations we did not foresee as well as outstanding and resilient in the service we provide day in and day out.

With our core: Resilience, Honesty, Innovation, Nimble and Outstanding RHINO; we pave this two-way street that will help our clients and partners Charge Their Business Forward.

From all of us at the Idea Financial family, we thank you for being our Oxpeckers as we grow together.

To the Crash: Thank You!