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Last Update: April 17th, 2020

Pre-Apply for the paycheck protection program (PPP) Loan


Update as of April 17, 2020: SBA funds for the initial portion of PPP are now depleted. We are unable to submit new applicants to our bank partners until the program has been replenished by congress. Please check back here as the situation updates.

Please check this page often for updated status

Now Accepting Pre-Applications

Paycheck Protection Program (PPP)

PPP is a forgivable loan program that provides short-term cash flow primarily to maintain payroll to businesses affected by COVID-19. The loan does not have to be repaid if requirements are met.

Pre-Apply Now

*Pre-application does not affect your credit score

*Disclaimer. This page is intended for informational purposes only and does not constitute legal or business advice. SBA government program stipulations and conditions are subject to change at any time and the information available on this page may be out of date. For company specific advice, please consult a licensed attorney.

Conditional Criteria

Is My Business Eligible For PPP Relief?

If the economic uncertainty around COVID-19 has made it difficult for you to support ongoing operations and retain staff, it is highly likely that your business will qualify. See below for primary criteria, as described by the SBA and the Department of Treasury on March 31, 2020.

Paycheck Protection
Affiliation Rule Test

PPP

CARES Act Stimulus Package - Paycheck Protection Program

Pre-Apply Now

Are you a VC-Backed Startup?

UPDATE April 17th, 2020: New legislation is expected to pass in the coming days to enable VC-backed startup to participate in the Paycheck Protection Program by adding simpler “control” guidelines. We’ll let you know when this is official.

Take our affiliation rule test now to understand if your corporate structure meets the criteria.

Has the current economic uncertainty made this loan request necessary to support ongoing operations?

Have you received an SBA economic injury disaster loan between Jan. 31 and April 3, 2020?

If you've already received an EIDL for COVID-19, you can generally refinance the EIDL into the PPP loan. However, you may not take out an EIDL and a PPP for the same purposes.

Will the funds used to retain workers and maintain payroll or make mortgage payments, lease payments, and utility payments?

Are you presently subject to an indictment or criminal charges?

Do you and your affiliated businesses have less then 500 employees?

If you have external institutional investors, you’ll want to take our affiliation rule test to see if this prevents you from accessing the PPP.

Are you US citizen, or do you have lawful permanent resident status?

Paycheck Protection Program

The Paycheck Protection Program Can Help Your Business

Information based on the SBA as of April 17th, 2020.

Paycheck Protection Program
Who lends to me?
Banks and non-bank lenders, on behalf of the federal government.
How much does it cost?
If you spend the loan proceeds on qualifying payroll, rent, mortgage interest, and utilities within an 8-week period from loan origination, you may not have to pay such portion back. Otherwise, interest is set at 1% per year, over a 2 year term.
Where do the funds come from?
The Small Business Administration insures 100% of the loan’s losses until Dec. 31 2020.
When can I apply by?
June 30, 2020
32 days left
How big is the program?
$349 billion
Why is the government doing this?
The government wants to support businesses affected by COVID-19 with short-term cash so they can retain workers and maintain payroll.
What criteria do I need to meet to qualify?
1. Your business needs financial support due to economic uncertainty caused by COVID-19;
2. Your business requires the money to retain retain workers, maintain payroll or to make mortgage, lease, and utility payments
How much can I borrow?
You can borrow 2.5x monthly average qualifying payroll costs, up to $10mm.
When can I apply?
Pre-apply with Rho now to receive updates as to when our SBA lending partners are ready to accept new PPP applications.
Do I have to pay it back?
You will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utilities payments over the 8 weeks after getting the loan. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs. You will also owe money if you do not maintain your staff and payroll.

Let Rho Business Banking help guide you through the PPP process - pre-apply today.

Checklist

What you’ll need to get ready for your application

In order to prepare for your application, you may need the following information about your company and you should get it ready. These are not requirements and are subject to change.

EIN Number

You’ll need your EIN number if you’re a businens, or SSN if you’re a sole proprietor.

Payroll tax filings for 2019

Be sure to collect all four quarters of 2019 payroll tax filings at both the state and federal level. If you use a payroll tax provider, they should have this data.

Additional information

Our bank partners may add other criteria to this list. Be prepared to provide tax filings and proof of identity and business ownership.

Ownership data

You’ll want documentation from all owners over 20% and affiliated businesses.

All employee W2s for 2019

Your employee W2s are important to prove your total payroll in 2019.

Ready? Fill out our pre-application form, and we’ll connect you with our partner SBA lender.

FAQ

FAQs on the Paycheck Protection Program

Learn more about PPP, the SBA relief program created by the CARES Act.

What is the PPP?
The Paycheck Protection Program is a component of the CARES Act, the federal stimulus package signed into law on March 27, 2020. It's an amendment to the U.S. Small Business Administration's 7(a) Program.
How does it work?
The PPP offers a total of $349bn of short-term cash flow to qualifying businesses if they maintain employee payroll that may be otherwise lost due to the economic impacts of COVID-19.
Is this a grant or a loan? Do I have to pay the money back?
If the funds are used explicitly as intended by the Paycheck Protection Program guidelines, the loan is forgiven, and the funds are effectively a grant. If funds are not entirely spent within the eight week period allotted, the unforgiven portion of the loan must be repaid and continues to accrue interest at 1.0%. Loan proceeds not spent on payroll, mortgage interest, rent, or utilities during the 8-week period will not be eligible for forgiveness.
Are there any fees?
There are no fees to the borrower. The government compensates the lender and agents (like Rho) for assembling and originating the loans. There is no difference in cost if you apply via Rho or any other institution.
Who actually makes the loan? Who will I be in debt to?
Bank and non-bank lenders in the SBA's network will process the loans. Rho works with several of the largest SBA lenders, and we will work with them to process applications made on our site.
What do I need to apply?
Requirements are likely to vary slightly bank-by-bank. A good place to start is preparing: Payroll tax filing forms for each quarter of 2019, all 2019 W2s for employees and 1099s for subcontractors, and canceled checks or account statements showing how much you're paying for rent, utilities, etc. When your application is processed, the bank may ask for additonal information.
When is the deadline to apply?
All applications need to be processed by the SBA and partner-banks by June 30, 2020.
What is the difference between the SBA's conventional 7(a) loan program and PPP?
If you have not taken an 7(a) loan prior to April 3rd, 2020, you can still apply for PPP. Part of the CARES act also allows you to defer interest and principal payments on your existing SBA loan- please contact your lender for more information.
Can I apply for PPP if I already have a 7(a) loan?
If you have not taken an 7(a) loan prior to April 3rd, 2020, you can still apply for PPP. Part of the CARES act also allows you to defer interest and principal payments on your existing SBA loan- please contact your lender for more information.
I have many contractors, but only 1 employee. Do my contractors count?
No. Independent contractors have the ability to apply for a PPP loan on their own so they do not count for purposes of a borrower’s PPP loan calculation (or loan forgiveness).
Can you apply for PPP at multiple banks?
You cannot submit an application at multiple banks. However, you can sign up for wait lists and pre-apply at multiple banks and at bank networks like Rho. We will contact you and request your approval prior to final submission and signatures, and if you have already had an application accepted elsewhere, you may decline submission. Once your application is signed and accepted by a bank or SBA lender you are only allowed to submit it once.
Are the contractors I employee overseas eligible for PPP?
No. PPP is only applicable to employees on payroll in the U.S.
How does PPP work if I have a sole proprietorship, am a freelancer, or am self-employed?
Sole proprietors who report income and pay taxes on a Schedule C in their personal tax return are eligible for PPP. If you're a sole proprietor, applications to apply for PPP open as early as April 10.
What documentation do I need to keep to prove to my SBA lender that I used the PPP funds correctly within the 8-week period?
The SBA has not yet provided guidance for how to document that PPP funds were spent correctly. Check back here for frequent updates, and in the meantime, retain as much proof and documentation as possible.
I'm in the process of starting a new business. Am I eligible for PPP?
No. PPP loans are only available to businesses that were in place as of 2/15/2020.
Are applications prioritized based on need, or based on speed? Are banks prioritizing the most important applications, or the first applications?
Banks are currently prioritizing existing business customers, and then will start working on new customers. Priority is not based on need.
The number of employees I have fluctuates. How do I determine how many I can apply to PPP with?
For purposes of calculating “Average Monthly Payroll”, most Applicants will use the average monthly payroll for 2019, excluding costs over $100,000 on an annualized basis for each employee. For seasonal businesses, the Applicant may elect to instead use average monthly payroll for the time period between February 15, 2019 and June 30, 2019, excluding costs over $100,000 on an annualized basis for each employee. For new businesses, average monthly payroll may be calculated using the time period from January 1, 2020 to February 29, 2020, excluding costs over $100,000 on an annualized basis for each employee.
Do I have to recognize the forgiven portion as taxable income to my business?
No, there is no tax penalty around loan forgiveness within the SBA program. Please contact your CPA for further details.
Can I apply for an EIDL in addition to PPP?
If you've already received an EIDL for COVID-19, you can generally refinance the EIDL into the PPP loan. However, you may not take out an EIDL and a PPP for the same purposes.
What’s in the fine print?
There is no requirement for collateral or credit component to this loan, which makes it incredibly unique. Companies with fewer than 500 direct or associated employees are eligible to apply. Companies must use at least 75% of the proceeds of the loan to cover direct payroll costs, and the additional 25% to cover indirect employee costs, namely rent, utilities and mortgage payments. Companies must affirm that the loan is necessary to maintain operations, and must use it for these purposes. If the loan is utilized in line with the directed purposes, after 60 days, the full amount is forgivable and does not have to be repaid. There is also no negative tax implication. Any amount that was not used during this period will be converted to a 2 year loan, at 1% interest.
What is the interest rate on the loan?
The interest rate on the loan is 1%. If the loan is forgiven, the applicable interest is as well.
I need a loan now. How long does it take to get funded?
It isn't yet clear how long it will take for the federal stimulus money to reach the hands of business owners. Applications for EIDLs are open, and can be completed at sba.gov. Some SBA lenders have begun processing PPP loans, but priority for new applications varies bank-by-bank. Pre-apply with Rho now to receive updates as to when SBA lenders in our network are ready to accept new PPP applications.
How does the money get to me?
Loans are made and funded by banks and non-bank lenders participating in the SBA's program. These SBA lenders are guaranteed by the government.
Who do I apply to?
For Economic Injury Disaster Loans (EIDLs), you can apply directly on the SBA website. For the Paycheck Protection Program, you can pre-apply through Rho Business Banking here, and we will keep you updated on when our bank partners are accepting applications. Applications submitted via Rho will be processed on a first-come-first served basis.
How can I make the process faster for my business?
You can start by pre-applying on the Rho website, or by contacting your bank if they are an approved SBA lender. Once you complete the application process with Rho, you will get an email explaining what documents you are likely to need. Start collecting those immediately. Once assigned to a bank partner, there may be additional documentation requirements depending on the nature of your business. They will walk you through this.
What is the SBA?
The U.S. Small Business Administration is an agency of the U.S. federal government dedicated to supporting American small businesses. The SBA works with member banks to guarantee a variety of loans made to small businesses, and has direct aid programs.
How do I calculate my payroll if I'm the only employee?
If you're the only employee of your sole proprietorship—for example, you're a freelancer or consultant—you can still apply for PPP. To calculate your payroll, you'll need to calculate the amount of profit you make each month. Since PPP asks for average payroll, the best way to do this is to take your annual profit and divide by 12, to reach your monthly payroll.
I had to lay off all of my employees. Am I still eligible?
If you had employees on payroll before February 15, 2020, you are still eligible. You can use PPP funds to re-hire laid off staff, and process their payroll.
I can't afford to pay my employees without funding from PPP. How can I bring them back on payroll before knowing I'll be eligible to receive PPP from an SBA lender?
After receiving the PPP loan, 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.
I've heard PPP covers gig economy workers like Uber drivers and Task Rabbit. If I'm a gig economy worker, how do I apply?
Starting April 10, 2020, independent contractors and self-employed individuals can apply for PPP loans. Pre-apply with Rho now to receive updates as to when our SBA lending partners are ready to accept new PPP applications.
Several of my employees have been impacted by COVID-19 and are ill, or caring for sick family members. Can I use PPP to cover their paid leave? Do PPP funds cover health insurance costs?
Yes, the PPP covers payroll costs, which include employee benefits such as costs for parental, family, medical, or sick leave. However, it is worth noting that the CARES Act expressly excludes qualified sick and family leave wages for which a credit is allowed under sections 7001and 7003 of the Families First Coronavirus Response Act (FFCRA) (Public Law 116–127).
Are venture backed startups eligible?
Some are likely to qualify, others are unlikely. This part of the law is still in flux, so check back here often, and take our affiliation test to see if you may qualify based on current standards (which may change).
If I borrow more than I end up needing to maintain payroll, do I pay interest on the rest of the loan amount?
Yes. The unforgiven portion of the loan remains to be repaid within two years and continues to accrue interest at 1.0%.
How does working with Rho help me?
Rho works with multiple SBA lenders on PPP and other credit products. By serving as a network of banks and lenders, we are able to help get you to the right lender that is most qualified to process your application, without having to apply multiple times.
How does Rho make money?
Rho Business Banking does not charge a fee to the borrower for PPP. We may charge a small fee to the lender to help facilitate the distribution of the stimulus aid, which does not impact the cost of your loan.
Why is Rho doing this?
We founded Rho Business Banking to improve the odds of success for growing companies. Today, that means helping businesses impacted by COVID-19 access capital from the CARES Act. The faster we can help businesses access funding, the quicker the recovery period will be.
Is Rho a bank?
No, Rho is a business banking platform. We partner with FDIC-insured banks, lenders and finance companies to power finance operations for small and medium businesses, startups and larger enterprises.

Why This Exists

It's our mission to help businesses succeed.

We founded Rho Business Banking to improve the odds of success for growing companies. Today, that means helping businesses impacted by COVID-19 access capital from the CARES Act. The faster we can help businesses access funding, the quicker the recovery period will be.

Here’s how it works: We connect applicants with our extensive network of lenders—typically reserved for Rho Business Banking clients—to apply for programs like the Paycheck Protection Program. Lenders then process the aid.

Rho Business Banking does not charge a fee to the borrower. Instead, we charge a small fee to the lender to help facilitate the distribution of the stimulus aid.

The SBA Economic Injury Disaster Loans (EIDLs) can be applied for directly through the SBA.

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