How to apply for SBA's new PPP loans.

The Paycheck Protection Program will help most small businesses in America receive immediate funds to keep workers employed. Learn how to apply now through Cerebro. 

Paycheck Protection Program

On Friday March 27, 2020 the President signed into law The Coronavirus Aid, Relief, and Economic Security (CARES) Act. Provisions under the legislation allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Most viable for the majority of small businesses is the Paycheck Protection Program. The PPP provides 100% federally guaranteed loans to small businesses who maintain their payroll during this emergency. Let Cerebro help you get the money to keep your employees paid during this uncertain time. 

Who can we help?

Due to overwhelming demand, we cannot service every company who is eligible for the program. However, we are prepared to support any company through the PPP application process that has existing loans of at least $2 million. These clients are potentially able to refinance and receive additional financing options in addition to the PPP loan program.

$2MM in Existing Debt

If your company has two million dollars in existing debt on the balance sheet, we can help!

What makes Cerebro Capital different?

Cerebro Capital’s expert loan advisors can ensure the accuracy of your application and increase the certainty of funding by accessing SBA lenders who are ready to push through applications as quickly as possible. While most banks in the US will offer this program, many are signalling that the application process will be more onerous than the standard forms the SBA requires. And some of the largest banks are not prepared to process the large volume of requests. Cerebro can help ensure you receive the COVID-19 funds that your company is promised under the CARES Act. 

Application Accuracy

Have a team of loan experts review your loan application and ensure you are receiving the highest loan amount applicable for your company.

Queued Lenders

We can help you submit the application to lenders in a queue who are ready to process quickly. If your incumbent lender is slow to respond, we can skip them and get you the another lender ready to process.

Get in line to receive your PPP funds today.

1) Estimate Loan Amount & Debt Capacity

Use Cerebro's debt capacity calculator to estimate loan amount. Receive list of diligence items and application.

2) Short Form Application & Online Data Room

Cerebro's application includes only the minimally required documents for the SBA. Avoid more onerous processes and get in line the line early.

3) Expert Review of Application

Pay a one time fee and our experts will ensure you are applying for the largest eligible loan amount & validate the accuracy of your application.

4) Send Application to Fast-Tracked SBA Lenders

Through Cerebro's loan platform, your application will be sent to the pre-qualified SBA lenders who are prepared and standing ready to fast track applications.

Paycheck Protection Program FAQs

  • A small business with fewer than 500 employees
  • A small business in industry that has an employee-based size standard through SBA that is higher than 500 employees CHECK HERE.
  • A 501(c)(3) with fewer than 500 employees
  • An individual who operates as a sole proprietor, an independent contractor, or who is self-employed who regularly carries on any trade or business
  • A Tribal business concern that meets the SBA size standard
  • A 501(c)(19) Veterans Organization that meets the SBA size standard
  • NOTE: The 500-employee threshold includes all employees: full-time, part-time, and any other status
  • YES, if one of the following apply, your business may be able to access additional funds:
  • If you are in the accommodation and food services sector (NAICS 72), the 500-employee rule is applied on a per physical location basis
  • If you are operating as a franchise or receive financial assistance from an approved Small Business Investment Company the normal affiliation rules do not apply
  • NOTE: The 500-employee threshold includes all employees: full-time, part-time, and any other status
  • Yes. If you received an EIDL loan related to COVID-19 between January 31, 2020 and the date at which the PPP becomes available, you would be able to refinance the EIDL into the PPP for loan forgiveness purposes.
  • However, you may not take out an EIDL and a PPP for the same purposes.
  • Remaining portions of the EIDL, for purposes other than those laid out in loan forgiveness terms for a PPP loan, would remain a loan. If you took advantage of an emergency EIDL grant award of up to $10,000, that amount would be subtracted from the amount forgiven under PPP.
  • Loans can be up to 2.5 x the borrower’s average monthly payroll costs, not to exceed $10 million.
  • The following payroll costs are permitted in the calculation of the loan amount:
    • Salary, wage, commission, or similar compensation;
    • Payment of cash tip or equivalent;
    • Payment for vacation, parental, family, medical, or sick leave
    • Allowance for dismissal or separation
    • Payment required for the provisions of group health care benefits, including insurance premiums
    • Payment of any retirement benefit
    • Payment of state or local tax assessed on the compensation of the employee
  • The following payroll costs are excluded from the calculation of the loan amount:
    • Compensation of an individual employee in excess of an annual salary of $100,000, as prorated for the period February 15, to June 30, 2020
    • Payroll taxes, railroad retirement taxes, and income taxes
    • Any compensation of an employee whose principal place of residence is outside of the United States
    • Qualified sick leave wages for which a credit is allowed under section 7001 of the Families First Coronavirus Response Act (Public Law 116– 5 127); or qualified family leave wages for which a credit is allowed under section 7003 of the Families First Coronavirus Response Act
  • A borrower is eligible for loan forgiveness equal to the amount the borrower spent on the following items during the 8-week period beginning on the date of the origination of the loan:
    • Payroll costs (using the same definition of payroll costs used to determine loan eligibility)
    • Interest on the mortgage obligation incurred in the ordinary course of business
    • Rent on a leasing agreement
    • Payments on utilities (electricity, gas, water, transportation, telephone, or internet)
    • For borrowers with tipped employees, additional wages paid to those employees
    • The loan forgiveness cannot exceed the principal.
  • YES – rehiring employees is one of the goals of the legislation and rehires are eligible for the forgiveness calculation provided they meet these criteria:
    • Reductions in employment or wages that occur during the period beginning on February 15, 2020, and ending 30 days after enactment of the CARES Act, (as compared to February 15, 2020) shall not reduce the amount of loan forgiveness IF by June 30, 2020 the borrower eliminates the reduction in employees or reduction in wages
  • The lending institution will set the terms of the loan on a case-by-case basis. However, the maximum terms of the loan feature a 10-year term with interest capped at 4 percent and a 100 percent loan guarantee by the SBA.
  • You will not have to pay any fees on the loan, and collateral requirements and personal guarantees are waived.
  • Loan payments will be deferred for at least six months and up to one year starting at the origination of the loan.

Under other SBA lending programs (e.g. 7a and 504 lending programs) businesses must meet certain criteria to qualify as a small business. These criteria typically consider the employees or annual revenue of the Borrower, as well as that Borrower’s affiliates.  For more details on how the SBA determines which businesses must be considered an affiliate of the Borrower, please refer to Section 121.103 of Title 13 of the Code of Federal Regulations.

In an effort to reduce the impact of affiliate considerations and expand the number of businesses that qualify for Paycheck Protection Loans, the CARES Act grants a waiver of the affiliate test under certain conditions. Specifically, affiliation consideration is impacted if one of these conditions is present:

  • Any business concern with not more than 500 employees that is assigned a NAICS code beginning with 72;
  • Any business concern operating as a franchise that is assigned a franchise identifier code by the SBA; and
  • Any business concern that receives financial assistance from a company licensed under section 301 of the Small Business Investment Act of 1958.

In the event a waiver of the affiliate test is available, your business will likely need to apply for loans under the program on a per location or per entity basis.

For example, consider the following scenario:

  • A parent corporation owns five hotels through five separate limited liability companies (subsidiaries); and
  • Each of these subsidiaries has 300 employees

While the consolidated employee count of the parent corporation is 1,500 employees, each subsidiary is still eligible to apply for a loan under the program on a stand-alone basis as they are in an industry that has been granted a waiver.

NOTE: None of the information contained herein is intended to be legal, tax, or investment advice, nor should it be relied on as such. You should consult your own legal, tax investment or other advisors, at both the onset of any transaction and on an ongoing basis to determine the laws and analyses applicable to your specific circumstance. Cerebro Capital, Inc. hereby disclaims all warranties associated with this information. The information contained in this communication may be obtained from a variety of sources and may be subject to change and Cerebro does not accept responsibility for, or guarantee it to be, accurate, timely, secure, error-free, malware-free or virus-free. Cerebro disclaims any and all liability for the information and disclaims all express or implied warranties, including without limitation, any warranties for information or errors contained in, or omissions from, the information, and the implied warranties of merchantability and fitness for a particular purpose. Cerebro and its employees and officers shall not be liable for any loss or liability suffered by you resulting from the provision to you of such information or your use or reliance in any way on such information. Such information is being provided on an “AS-IS, WHERE-IS” basis and “WITH ALL FAULTS.”

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