Help for Businesses Affected by COVID-19

Apply for Your SBA Loan with RidgeStone Capital

If your business has been affected by the COVID-19 pandemic, the new SBA PPP (Small Business Administration Paycheck Protection Program) loan could give you access to 2.5X your average monthly payroll in relief funds.

Who is eligible for this loan?

  • Small businesses, 501(c)(3) nonprofit, a 501(c)(19) veteran’s organization, or Tribal business concern described in section 31(b)(2)(C) of the Small Business Act with not more than 500 employees, or the applicable size standard for the industry as provided by SBA, if higher.
  • Sole-proprietors, independent contractors, and other self-employed individuals as eligible for loans.
  • Businesses with more than one physical location qualify so long as total combined employees are below 500 employees (unless the businesses operated under NAICS code beginning with 72) or otherwise meet the SBA’s size standard based on NAICS code.
  • Waives affiliation rules for businesses in the hospitality and restaurant industries, franchises that are approved on the SBA’s Franchise Directory, and small businesses that receive financing through the Small Business Investment Company (SBIC) program.
  • Applies current SBA affiliation rules to eligible nonprofits.

What is the minimum credit score needed?

There is no minimum credit score.

What collateral or personal guarantee is required?

There is no collateral required.
There is no personal guarantee required.
The Credit Elsewhere Rule is not enforced.

What parts of my business am I allowed to use this loan for?

Allowable uses of the loan:

  • Payroll costs – this includes salaries, certain employee benefits, state and local taxes. Payroll costs are capped at $100,000 on an annualized basis for each employee. Seasonal employees and businesses in operation for less than a year are subject to a different calculation.
  • Group healthcare benefits.
  • Insurance premiums.
  • Interest paid on a mortgage or rent (excludes any prepayment of or payment of principal).
  • Utility payments.
  • Proceeds may not be used to prepay debt.

What is the interest rate on this loan?

The interest is 1%.

How do I calculate how much I can borrow?

The monthly average of your annual payroll x 2.5

For example: Annual payroll is $1,200,000 (all employees <$100,000). Monthly average is $100,000. Loan Amount equals $100,000 * 2.5 = $250,000
Our maximum loan amount determined by the SBA is $250,000.

I have already signed for the Disaster Relief Loan, can I also apply for this loan?

If you have already registered for the Disaster Assistance loan, you cannot use the money from that loan for the same purpose.

Example: If you have obtained a disaster loan for payroll and insurance, you cannot use the money for the same purpose. If you contained the Disaster Loan for additional equipment purchase, then you can obtain this loan for payroll and taxes.

What is the maturity of the loan?

Any portion of the Paycheck Protection Loan that is not forgiven will have a term up to 2 years and amortize the same as 7 (a) loans, which are generally paid with fixed monthly principal and interest payments, not to exceed 1%.

Payroll Expense Verification Documents

Payroll Expense verification includes:

  • IRS Form 940 and 941
  • If a Payroll Summary Report is not available, Employee Pay Stubs as of February 15, 2020 (or corresponding period) with a corresponding bank statement
  • Certification that all employees live within the United States. If any do not, provide a detailed list with corresponding salaries of all employees outside the United States
  • Trailing twelve-month profit and loss statement (as of the date of application) for all applicants

*Sole Proprietors – 1099 + proof of payroll records

Items Needed for Loan Forgiveness

Proof of payment of the following:

  1. Breakdown of payroll benefits (vacation, allowance for dismissal, group healthcare benefits, retirement benefits, etc.
  2. Most recent Mortgage Statement or Rent Statement (Lease)
  3. Most recent Utility Bills (Electric, Gas, Telephone, Internet, Water)

*Sole Proprietors – 1099 + proof of payroll records

When can I apply for this loan?

Use our PPP Loan Quick Apply form on this page to apply for the SBA Paycheck Protection Program Loan.

Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.

PPP Loan Quick Apply

1 Minute Application

4 Hour Funding Decisions

Receive Funds in 24 Hours

Loans and credit lines up to $5M

Take Action

Our Process

Apply now

Apply online or phone it in (we’ll do the typing). Our simple application process takes only a few minutes. Just have your business tax ID (EIN) and three months of business bank statements on hand.

Review options

A RidgeStone Capital loan expert will call you within one business day to discuss your loan options. If approved, choose the terms and amount that best fit your business needs.

Receive funds

Once approved, your business loan is deposited in your bank account as quickly as the next business day. Lines of credit are available on the same day as approval in many cases.