Who Qualifies for a PPP Loan?
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Wondering if you qualify for a PPP loan? We’ve got you covered. Check out this blog post to see if you meet the qualifications.
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Overview of the PPP Loan
The Payment Protection Program (PPP) is a federal loan program that provides financial assistance to small businesses and non-profit organizations that have been impacted by the COVID-19 pandemic. The program is administered by the Small Business Administration (SBA) and provides low-interest loans of up to $10 million for businesses to use for payroll expenses, rent, utilities, and other operating expenses.
To be eligible for a PPP loan, businesses must have fewer than 500 employees and must have experienced a reduction in revenue of at least 25% in the first quarter of 2020 compared to the same period in 2019. Businesses that are majority owned by small businesses with fewer than 500 employees are also eligible for the program.
Who Qualifies for the PPP Loan?
To be eligible for a PPP loan , you must be a small business, non-profit organization, tribal business concern, sole proprietor, self-employed individual, or independent contractor. You must also have a physical business location in the United States. If you meet these qualifications, you may be eligible for a PPP loan.
Businesses that Were Operational on February 15, 2020
To qualify for a PPP loan, you must have been in operation on February 15, 2020 and must have paid salaries and payroll taxes. You also need to be able to demonstrate that your business has been affected by the coronavirus pandemic.
Businesses that Have Experienced a Decrease in Gross Receipts
To qualify for a PPP loan, you must demonstrate that your business has experienced a decrease in gross receipts. Gross receipts generally include all revenue in whatever form received or accrued (in accordance with generally accepted accounting principles) from whatever source, including from the sale of products or services, interest, dividends, rents, royalties, fees, or commissions. However, for certain types of businesses (like financial institutions), gross receipts may exclude revenue from non-operating activities.
If you are a seasonal business, you will use either your gross receipts from the 2019 calendar year or your average monthly gross receipts for the period between February 15, 2019 and June 30, 2019. If your business did not exist during that time period, you will use your average monthly gross receipts from the period beginning when your business started operating through December 31, 2019.
How to Apply for the PPP Loan
The PPP loan is a government-backed loan designed to help small businesses keep their doors open and maintain their workforce during the COVID-19 pandemic. If you’re a small business owner who has been affected by the pandemic, you may be wondering if you qualify for the PPP loan. In this article, we’ll give you an overview of the PPP loan and what you need to do to apply.
SBA Application Portal
The PPP loan application process is now open for small business owners and the self-employed. You can apply for a PPP loan through the Small Business Administration (SBA) Application Portal.
Before you begin, make sure you have the following information on hand:
-Your business’s tax identification number (TIN)
-Your business’s legal name and address
-Your business’s bank account information
-Your business’s payroll information for the past 12 months
Once you have all of this information, you will be able to begin your application. The process is simple and should only take a few minutes to complete.
Lender Application Portal
The Paycheck Protection Program (PPP) loan is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
The PPP loan will be forgiven if all employee retention criteria are met, and the funds are used for eligible expenses.
To apply for a PPP loan, you will need to work with an eligible lender.
The Small Business Administration (SBA) has engaged more than 3,000 lenders to participate in the program.
You can find a list of SBA-recognized lenders on their website:
https://www.sba.gov/paycheckprotection/find
PPP Loan Forgiveness
The Paycheck Protection Program (PPP) loan forgiveness process is designed to help small business owners who have been impacted by the COVID-19 pandemic. The PPP loan forgiveness process will forgive the portion of the loan that is used for eligible payroll costs, rent, mortgage interest, or utility payments.
Covered Period
The covered period is the time during which you can spend your PPP loan proceeds and have those expenses forgiven. It begins on the date you receive your loan proceeds and ends either 24 weeks later or on December 31, 2020, whichever comes first.
Eligible Expenses
You can use your PPP loan for eligible payroll and non-payroll expenses, including:
-Payroll expenses, such as salary, hourly wage, commission, or tip income;
-Employee benefits, including costs for vacation, parental, family, medical, or sick leave;
-Allowances for separation or dismissal;
-Insurance premiums;
-Mortgage interest payments;
-Rent;
-Utilities.
