Update: Small businesses can no longer apply for Payment Protection Program loans through this program as of March 31, 2021. Read on to learn how Payment Protection Program loans work, and check out more restaurant capital and financing resources.
Last year, the COVID relief bill passed by Congress and the President included small business loans through the Small Business Administration (SBA) Payment Protection Program (PPP). While many merchant partners benefitted from these loans, many others found the application process difficult to navigate. The latest government stimulus package commits $284.5B to PPP, so we've put together this guide to helping businesses receive the funds they need.
PPP Loans 101
Payment Protection Program loans were created to help small businesses impacted by the COVID-19 pandemic by providing them with loans that are potentially 100% forgivable.
There are two types of PPP loans:
First Draw: Loans for businesses who have not received a PPP loan before
Second Draw: Loans for businesses who received a PPP loan during the first round
The loan amounts and eligibility requirements are different for First Draw and Second Draw loans; you can find detailed information about both here.
How to Apply
If you have an existing banking relationship with an SBA-qualified lender, you may want to apply for a PPP loan through them. DoorDash has also partnered with BlueVine, a lender focused on small businesses, to help our partners access PPP loans. In 2020, we helped more than 200 merchants receive nearly $6 million in PPP loans through BlueVine.
You can use BlueVine's online application whether you're applying for a First Draw loan or a Second Draw loan — even if you received an earlier PPP loan through a different bank. Applications are due by May 31, 2021.
Frequently Asked Questions
Who is eligible to apply for a PPP loan?
Many small businesses are eligible to apply, though requirements differ slightly depending on whether you are applying for a First Draw or Second Draw loan. You can find detailed eligibility requirements here.
How is the size of a loan determined?
Similar to eligibility, loan size depends on whether you are applying for a First Draw or Second Draw loan. In either case, the application process will walk you through gathering the information you need to determine the loan amount. Find out more about loan amounts here.
What information do you need to apply for a PPP loan?
First Draw (first time) applicants will need to provide:
Basic information about the business owner and their business
Average monthly payroll costs
Details of full-time employees and associated payroll costs
Details of all owners with greater than 20% ownership stakes
Proof of mortgage interest payments, rent payments, and utility bills
Payroll tax filings such as 941, 940, 1099, or payroll processor records
Second Draw applicants who already received PPP funding will need to meet the following requirements:
Must demonstrate a ≥25% loss in revenue for any one quarter in 2020 relative to the same quarter in 2019
Must have used your entire first-round PPP loan
Must have fewer than 300 employees
Must have been in operation on February 15, 2020
When will I know if my loan application has been approved by the SBA?
Once your application is sent to the SBA to be processed, it may take a few days to process the application. Once processing is complete, you will be sent an email with instructions to accept and sign the loan offer.
If approved, how long will my loan offer be available for?
The offer will be available for thirty days.
How long will it take for me to receive the funds?
Once you Docusign and accept your offer, an ACH deposit will be made into the bank account you added during the application process within a few business days.
Do I have to be a DoorDash merchant to apply for a PPP loan with BlueVine?
No. Our referral program with BlueVine, which includes additional application support, is exclusive to DoorDash merchants, but any small business can apply for a PPP loan with BlueVine or any other SBA lender.
Is DoorDash associated with BlueVine?
No, DoorDash is not associated with BlueVine in any way other than through this referral program. For all matters relating to your PPP loan with BlueVine you will need to work directly with BlueVine and not DoorDash. DoorDash is not a lender of PPP loans and does not take responsibility for any aspects of the PPP loan you receive through BlueVine, including servicing the loan or processing your forgiveness application. Please consider all of your PPP lending options, including obtaining a PPP loan through your existing bank.
Does DoorDash receive any compensation for BlueVine referrals?
Yes, DoorDash receives a small referral fee for any loans that BlueVine processes that were referred by DoorDash. DoorDash intends to donate all referral fees received through this program to non-profit organizations that support small business restaurants. During the first PPP round, DoorDash donated all referral fees received through the partnership to the California Restaurant Association Foundation's Restaurant Care COVID-19 Grants Program and the Accion Opportunity Fund's Small Business Relief Fund.