Frequently asked questions
Are you the direct lender?
applyforrelief.com and parent company 11 Capital Finance are a national lending brokerage and loan packaging company who is working directly with one of the only 14 nonbank lenders licensed to make SBA 7(a) loans in order to help deploy this relief capital as quickly as possible to as many businesses as possible.
I want to apply, is your website secure?
Yes! We take site security very seriously. Our website if fully encrypted, secure and independently verified. Furthermore, we would never share or sell any of your personal information.. Ever!
How do I know if I'm being scammed by someone pretending to be a licensed lender or broker?
Simply do your due dilligence! Unfortunately, there will be people out there trying to capitalize on other's misfortune. Anyone who asks you for money upfront in order to get you a relief loan is scamming you.
Applyforrelief.com and parent company 11 Capital Finance, LLC is a large national lending conduit and loan packaging compnay who is directly setup with one of only 14 nonbank lenders licensed to make SBA 7(a) loans. We are here to make sure that you get the funding you need to keep your doors open!
How much money can I access?
You will be able to apply for up to $10,000,000 in relief funding.
Who is Eligible?
• 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 needed to determine eligibility?
Business must be operational as of February 15, 2020 and had employees for whom it paid salaries and payroll taxes, or a paid independent contractor.
How do you calculate the total loan amount?
Average eligible monthly payroll costs, excluding compensation above $100,000 per employee in wages (based on prior 12 months) multiplied by 2.5 (represents months) – plus – the balance of any SBA Loan closed between 1/31/2020 and when this loan will be made, if applicable – OR – $10 million whichever is less.
(Don't worry we can help you with calculations if you are confused)
What is the allowable use of the proceeds?
Allowable uses of the loan include eligible payroll support (eligible employee salaries which excludes compensation above $100,000 in wages, paid sick or medical leave, insurance premiums), interest paid on a mortgage (excludes any prepayment of or payment of principal) or rent, and utility payments.
What is the interest rate?
0.5% for the SBA 7(a) PPP
What is the term of the loan?
10-year full payout loan. There will be no prepayment penalty. Allows for complete deferment of SBA 7(a) Loan payments for at least six (6) months and not more than a year.
What collaretal is required?
The loan will be unsecured.
Are personal guarantees required?
Is the credit elsewhere rule enforced?
Other conditions and requirements
• Cannot apply for any other programs through the SBA for the same purpose.
• If a borrower has an EIDL Loan unrelated to COVID-19, borrower is still eligible.
• The emergency EIDL grant award of up to $10,000 would be subtracted from the amount forgiven under the Paycheck Protection Program.
• Eligible borrowers will be required to make a good faith certification that the loan is necessary due to the uncertainty of current economic conditions caused by COVID-19; they will use the funds to retain workers and maintain payroll, lease, and utility payments; and are not receiving duplicative funds for the same uses from another SBA program.
Is it true I won't have to pay back my loan?
• The borrower is eligible for loan forgiveness equal to the amount spent by the borrower during an 8-week period after the origination date of the loan on eligible payroll costs, interest payments on any mortgage incurred prior to February 15, 2020 (excludes principal and prepayments), payment of rent on any lease in force prior to February 15, 2020, and payment on any utility for which service began before February 15, 2020. Amounts forgiven may not exceed the principal amount of the loan.
• Forgiveness on a covered loan is equal to the sum of the following: eligible payroll costs (excludes compensation above $100,000 in wages) incurred during the covered 8 week period compared to the previous year or time period, proportionate to maintaining employees and wages: eligible payroll costs plus any payment of interest on any covered mortgage obligation (excludes any prepayment of or payment of principal on a covered mortgage obligation) plus any payment on any covered rent obligation + and any covered utility payment. Borrowers will verify these payments through documentation required by lenders, such as (but not limited to) IRS Payroll Expense Forms 940 and 941, mortgage statements, lease statements and utility statements.
• The amount forgiven will be reduced proportionally by any reduction in employees retained compared to the prior year and reduced by the reduction in pay of any employee beyond 25 percent of their prior year compensation. To encourage employers to rehire any employees who have already been laid off due to the COVID-19 crisis, borrowers that re-hire workers previously laid off will not be penalized for having a reduced payroll at the beginning of the period.
• Canceled indebtedness resulting from this section will not be included in the borrower’s taxable income.
• Any loan amounts not forgiven at the end of one year are carried forward as an ongoing loan with terms of a max of 10 years at 4% interest. The 100% loan guarantee remains intact.
What will be the required application document checklist?
Here is a shortlist of the items we’ll need to process the SBA 7(a) relief loan:
• Completed Application
• Articles of Incorporation/Organization of each borrowing entity
• By Laws/Operating Agreement of each borrowing entity
• All owners Driver’s Licenses
• Payroll Expense verification documents to include:
• IRS Form 940 and 941
• Payroll Summary Report with corresponding bank statement
If a Payroll Summary Report is not available, Employee Pay Stubs as of February 15, 2020 (or corresponding period) with corresponding bank statement, and,
• Breakdown of payroll benefits (vacation, allowance for dismissal, group healthcare benefits, retirement benefits, etc.
•1099s (if Independent Contractor)
• 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
• Most recent Mortgage Statement or Rent Statement (Lease)
• Most recent Utility Bills (Electric, Gas, Telephone, Internet, Water