How QuickBooks Capital streamlined the PPP loan process for the smallest of small businesses
QuickBooks Capital® is currently accepting applications for the SBA’s Paycheck Protection Program (PPP), a federal program of government-backed loans to help small businesses, self-employed individuals, and other eligible organizations continue paying eligible payroll costs and certain operating expenses. So far, QuickBooks Capital has processed more than $800 million in SBA-approved loans, with an average loan size of $40,000 for small businesses and a $7,000 average for self-employed individuals.
QuickBooks Payroll customers and QuickBooks Self-Employed customers who filed their 2019 IRS Form 1040 Schedule C with TurboTax® are currently eligible to apply for PPP Loans through QuickBooks Capital, with certain restrictions. Small businesses, self-employed individuals, and other eligible organizations can also choose to submit an application for a PPP loan to another approved SBA lender.
As of May 15, 2020, there are still more than $100 billion remaining in PPP funds. This means more eligible small businesses and self-employed individuals can still apply through QuickBooks Capital. If you’re still deciding whether a PPP loan is right for your company, here’s the story of one small business that was funded in the first round.
For a list of resources, visit the Intuit Coronavirus Small Business Resource Center.
Ricky Singh is managing director at Adventiz Inc., a company that sells permanent makeup and microblading merchandise to beauty salons, medspas, and plastic surgeons. Once his clients had to close their doors, he says business at his company decreased by 60-75%.
The company has two full-time and three part-time employees, and is based in Chino Hills, CA, east of Los Angeles. He says, “It was kind of nerve-wracking in the beginning, because our employees saw sales dropping.”
Singh knew his company was a potential candidate for the PPP – and he knew it was important to apply quickly to the program.
Singh tried to apply for a PPP loan with his bank, but got no further than filling out a contact form. “I never heard back from them,” he says, but was determined to keep trying. “I felt strongly that this business would not just evaporate into thin air; it was just a matter of sustaining ourselves during this uncertain time.” He tried another bank, but also got no immediate response.
On April 15, Singh was in QuickBooks working on payroll when an in-product notification appeared, giving him the option to apply for a PPP loan within QuickBooks Capital. The banks still hadn’t responded, so he decided to take a chance.
“And sure enough, I filled out the application. It took me about 5 minutes, maybe less, and it was done. I was really surprised at how easy the process was…It was really a breeze.”
Singh’s perseverance paid off. Adventiz was one of the first to be approved and funded within QuickBooks Capital.
“I received an email, first, and I wasn’t sure if we were going to receive the relief money because there was news that the SBA had run out of funds, he says, “But, we received the money. The whole process literally took, I want to say, six days with a weekend in between, so four days. I was floored.”
When Singh told his employees about the funding, they were very excited and it was a big sigh of relief. “I think we’re gonna be good for a couple months going forward; we’re seeing a small light of hope in the future.”
The company has seen an uptick in other beauty products, such as hair tinting and shaving products, and plan to add more essential products to their portfolio mix going forward.
“We’re not going to shut down completely,” he says, “our products are going to survive.”
The QuickBooks Capital enabled Paycheck Protection Program loan application process supports certain single-owner and multi-owner businesses, as well as certain self-employed individuals. QuickBooks Capital is not able to process applications from Schedule C filers who have employees, seasonal businesses, or recipients of an EIDL loan between January 31, 2020, and April 3, 2020. QuickBooks Capital does not support users located in AK, NV, nor the U.S. Territories.
Given the large demand for additional authorized Paycheck Protection Program funds, not every qualified Paycheck Protection Program applicant will receive a loan.
Regulations and guidance from the SBA and the U.S. Department of the Treasury on the PPP are evolving rapidly and the above information may be outdated. Please refer to the latest guidance from SBA and Treasury to confirm current program rules and how they apply to your particular situation. The funding described is made available to businesses located in the United States of America and are not available in other locations.
QuickBooks Capital is licensed as Intuit Financing Inc. (NMLS # 1136148), a subsidiary of Intuit Inc. In California, loans are made or arranged under CFL Licensed #6054856.
Minimum loan amount varies by state.
Intuit Financing Inc. is a licensed lender in states that require a license. Our service is limited to commercial or business loans only. State licenses include: AK #10000990, CA #6054856, DC #ML1136148, FL #CF9901279, MD #03-2339, MN #MN-RL-1136148, NM #1899, ND #MB102690, RI #20183584SL, RI #20183583LL, SD #MYL.3279, TN #166418, VT #7194 and VT #7195.
Intuit Financing Inc., (d/b/a QuickBooks Capital) is an authorized SBA Paycheck Protection Program Lender.
Source: May 18, 2020, from QuickBooks® Blog, by QuickBooks Online Team
To learn more Schedule Time with Jonathan, or call (617) 332-8522