What is the Deadline for a PPP Loan?
If you’re wondering what the deadline is for applying for a PPP loan , you’re not alone. Many small business owners are still trying to figure out the best way to navigate the COVID-19 pandemic, and the Paycheck Protection Program is a big part of that.
The good news is that you have until June 30, 2020 to apply for a PPP loan. So if you’re still trying to decide if it’s the right move for your business, you
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The PPP Loan
The PPP Loan is a part of the CARES Act that was passed in March 2020. This loan is available to small businesses and is 100% forgivable if used for payroll, rent, or mortgage payments. The deadline to apply for the PPP Loan is December 31st, 2020.
What is the PPP Loan?
The PPP Loan is a type of loan that is provided to businesses in order to help them with payroll and other expenses during the COVID-19 pandemic. The loan is provided by the US Small Business Administration (SBA) and has a maximum amount of $10 million. The loan must be repaid over a period of two years and has an interest rate of 4%.
The deadline for applying for a PPP Loan is June 30, 2020.
What is the deadline for a PPP Loan?
June 30, 2020 is the deadline for a PPP Loan.
Eligibility
Who is eligible for a PPP Loan?
In order to be eligible for a Paycheck Protection Program loan, you must:
-Be a small business, nonprofit organization, veterans’ organization, or tribal business concern that employs fewer than 500 employees
-Be a business concern, nonprofit organization, veterans’ organization, or tribal business concern that does not have an affiliation with a larger entity that employs more than 500 employees
-Be an individual who operates as a sole proprietor, independent contractor, or eligible self-employed individual
-Have filed for unemployment compensation at some point in 2020
-Not be currently delinquent on any federal debt
What are the requirements for a PPP Loan?
In order to be eligible for a PPP loan, you must:
-Be a small business, nonprofit organization, veterans organization, or Tribal business concern with 500 or fewer employees; or
-Be a business that falls under the North American Industry Classification System (NAICS) code for accommodation and food services (as described in section 7(a)(36) of the Small Business Act); or
-Be an Individual who operates as a sole proprietor, an independent contractor, or is self-employed; or
-Have been in operation on February 15, 2020.
Application Process
How do I apply for a PPP Loan?
The PPP loan application process is relatively straightforward. You can apply through any SBA-approved 7(a) lender or through any participating federally insured depository institution, credit union, Farm Credit System institution, or nontraditional lender.
The first step is to complete and submit the PPP borrower application form. This form includes basic information about your business, such as your legal business name, physical address, Evidence of Business Activity Form (Schedule C for sole proprietorships), and Tax Identification Number. You will also need to provide information about your payroll costs for 2019 and 2020.
Once you have submitted your application, the lender will review it and determine whether you are eligible for a PPP loan. If you are eligible, the lender will send you a Promissory Note and a Disclosure Statement that you will need to sign and return. You will also need to provide supporting documentation, such as bank statements or payroll processing reports.
If you are approved for a PPP loan, the funds will be deposited into your account within 10 days. You will have 24 weeks to use the funds.
What is the deadline for a PPP Loan?
The deadline for a PPP Loan is March 31, 2021.
Forgiveness
The period during which you can spend the loan proceeds and still have the entire loan forgiven is called the “covered period.” The covered period for a PPP loan is the earlier of either 24 weeks or December 31, 2020.
What are the requirements for loan forgiveness?
To qualify for loan forgiveness, you must use the loan proceeds for qualifying expenses, which include payroll costs, mortgage interest (but not principal), rent and utilities. You must also maintain employee and salary levels. Forgiveness is reduced if you reduce salaries or employee headcount.
To apply for forgiveness, you will need to submit a request to your lender. The lender has 90 days to review and approve the request. If it is approved, the SBA will forgive the balance of the loan and you will not be responsible for any additional payments.
If your loan is not forgiven in full, you will be responsible for repaying any remaining balance. The loan has a maturity date of 2 years from the date of disbursement, and you will be required to make monthly payments at that time.
What is the deadline for loan forgiveness?
The deadline to apply for loan forgiveness is December 31, 2020. Borrowers can apply for forgiveness at any time during the covered period, which begins on the date of disbursement and ends either 24 weeks or December 31, 2020, whichever comes first.
