How the SBA 7(a) Paycheck Protection Program Works

The SBA 7(a) Paycheck Protection Program was created to assist small businesses in covering operating expenses by providing up to 8 weeks of payroll costs including benefits. Sky Bridge is able to provide a 100% online application for the program powered by Cross River Bank. When you apply using our application, it will be sent directly to the SBA.

Here are some things you should know about the PPP program:

  • Your business can apply for a loan of 2.5 avg. monthly payroll costs (up to $10 million)
  • The funds can be used to pay rent, interest on mortgages, and utility costs. If the loan is used only for these approved purposes, the amount is forgiven
  • Payroll costs are capped at $100k on an annualized basis for each employee
  • All U.S. businesses with 500 or less employees are eligible to apply (including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors). Note: if your business has more than 500 employees, you still may be eligible in certain industries. Please speak to one of our funding advisors for details.
  • A business is eligible to apply even if the small business is applying to other relief programs, but eligible businesses must apply before June 30, 2020
  • Loan terms up to 2 years
  • There is a 1% interest rate
  • Loan payments will be deferred for 6 months



There is no personal guarantee or collateral required

There are no fees from the government or lender to you, the small business

No prepayment penalties or fees


More about SBA 7(a) Paycheck Protection Program loan forgiveness:

Funds are provided as business loans and will be fully forgiven if used for payroll costs, interest on mortgages, rent, and utilities (at least 75% of the forgiven amount must have been used for payroll) Forgiveness is based on the small business employer maintaining or quickly rehiring employees and maintaining salary levels. Loan forgiveness will be reduced if your business’ full-time headcount declines, or if there is a decrease in salaries and wages.


Loan forgiveness may be reduced if:

  • Number of Staff: Your loan forgiveness will be reduced if you decrease your full-time employee headcount
  • Level of Payroll: Your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019
  • Re-Hiring: You have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020


In order to request loan forgiveness:

After receiving the loan, a small business can submit a forgiveness request to the lender. The request needs to include documents that verify the number of full-time equivalent employees and their pay rates, as well as payments on eligible mortgage, lease, and utility obligations. Certification that the documents are true and that the business used the forgiveness amount to keep employees and make eligible mortgage interest, rent, and utility payments. The lender will need to make a decision on the forgiveness within 60 days.

questions? Call or email us