Quick Answer: Who Qualifies For A PPP Loan?

Do you need an employee to qualify for PPP loans?

You don’t need employees to qualify for loan forgiveness under the Paycheck Protection Program.

The PPP has specific rules for self-employed workers, independent contractors, and gig workers that allow them to reclaim salary lost due to the pandemic..

Can you still get a PPP loan?

The answer to all these questions is yes, you can still qualify for a PPP loan!

What are the new PPP rules?

New loans are capped at $2 million, compared to $10 million before. Applicants must have no more than 300 employees, instead of up to 500, and must demonstrate at least a 25 percent drop in revenues from the fourth quarter of 2019 to the same period this year. Related: A Florida landlord got a big PPP loan.

Does PPP check credit?

PPP Credit Checks There does not appear to be any credit check required for PPP loans. That’s somewhat surprising because these loans technically fall under the SBA 7(a) loan program, which typically does require acceptable credit.

Can I apply for a PPP loan online?

You can apply online in minutes and get the relief funding you need as soon as possible. Both existing customers and new customers are welcome to apply.

How do I apply for a PPP loan?

You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program.

When should I apply for PPP forgiveness?

You must apply for forgiveness within 10 months after the end of the ‘Covered Period. ‘ which is the 24-week period that starts when you received your PPP loan. The lender (i.e. your bank) has 2 months to process your loan forgiveness application then SBA has three additional months to approve your forgiveness.

Will PPP loans be forgiven?

PPP loan borrowers are being steered toward forgiveness. … Generally, the loans are forgivable if at least 60% of the proceeds go to payroll expenses. The Small Business Administration and Treasury Department recently released simplified forgiveness applications for firms that borrowed $50,000 or less.

What is the deadline for PPP loan?

Following approval by the Senate and House of Representatives, President Trump signed legislation July 4, 2020, extending the deadline to apply for a Paycheck Protection Program Loan through Aug. 8, 2020. The original deadline to apply was June 30, 2020.

What can I use the PPP loan for?

PPP loans can be used for the following purposes: (a) “payroll costs” (defined in Question 17); (b) costs related to the continuation of group health benefits during periods of paid sickness, medical, or family leave, insurance premiums; (c) mortgage interest payments (but not prepayments or principal payments); (d) …

Who is not eligible for a PPP loan?

Passive businesses owned by developers and landlords that do not actively use or occupy the assets acquired or improved with the loan proceeds (except as Eligible Passive Companies under 13 CFR § 120.111) are not eligible.

What documents do I need for PPP loan forgiveness?

For the payroll portion of your PPP loan, you will need to provide documents from your payroll provider and proof of paying employment taxes with IRS and state forms. Eligible payroll costs include salaries and wages, health benefits, and paid leave (i.e. vacation, parental, family, medical, or sick leave).

When can I apply for PPP forgiveness?

Borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from loan origination.