SBA PPP Agent Fee Agreement: What You Need to Know
The Small Business Administration`s Paycheck Protection Program (PPP) has been a lifeline for many small businesses struggling during the COVID-19 pandemic. The program has enabled small business owners to receive forgivable loans to cover payroll costs, rent, utilities, and other eligible expenses. To help small businesses navigate the complex application process, many have turned to PPP agents to assist them. But what exactly is a PPP agent, and how do they get compensated for their services? That`s where the SBA PPP Agent Fee Agreement comes in.
What is a PPP Agent?
A PPP agent is a third-party service provider who assists small business owners in preparing and submitting their PPP loan application to a lender. PPP agents can be accountants, bookkeepers, lawyers, or any other professional with experience in small business finance. They are not employees of the SBA, and their services are not endorsed by the agency.
What is the SBA PPP Agent Fee Agreement?
The SBA PPP Agent Fee Agreement is a legal document that outlines the terms and conditions under which PPP agents can be compensated for their services. The agreement applies to all PPP loans with a loan amount of $50,000 or less. If the loan amount is above $50,000, the borrower and lender must come to their own agreement on the agent`s compensation.
Under the SBA PPP Agent Fee Agreement, PPP agents can charge a fee of up to 1% of the loan amount or $500 per application, whichever is lower. This fee can only be charged to the borrower and cannot be included in the loan amount. PPP agents must also disclose their fee to the borrower and obtain the borrower`s consent before charging the fee.
What are the benefits of using a PPP Agent?
PPP agents can help small business owners navigate the complex PPP loan application process. They can assist with gathering and organizing the required documents, calculating the loan amount, and submitting the application to a lender. This can save small business owners time and reduce the risk of errors or omissions in the application.
Additionally, PPP agents can provide valuable advice on how to use the loan funds to maximize forgiveness. They can help small business owners understand the forgiveness requirements and provide guidance on how to document eligible expenses.
Conclusion
If you are a small business owner considering applying for a PPP loan, you may want to consider using a PPP agent to assist you. Make sure to ask about their fees and review the SBA PPP Agent Fee Agreement before agreeing to their services. With the help of a knowledgeable PPP agent, you can increase your chances of receiving a forgivable loan and ensuring your business`s survival during this challenging time.
