Who Can Apply For a PPP Loan?

The Paycheck Protection Program (PPP) is a loan designed to help small businesses keep their employees on the payroll during the COVID-19 pandemic. But who exactly can apply for a PPP loan?

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The Paycheck Protection Program (PPP) loan is a small business loan designed to help businesses keep their workers employed during the COVID-19 pandemic.

Small business

Small businesses with fewer than 500 employees—including nonprofit organizations, veterans’ organizations, tribal concerns, self-employed individuals, sole proprietorships and farmers—are eligible for PPP loans.


If you are self-employed, you may be eligible for a Paycheck Protection Program (PPP) loan. Self-employed individuals, including gig workers, independent contractors and sole proprietors, are eligible for the PPP loan. You may apply for a PPP loan if you meet the following criteria:

-You have filed a Form 1040 Schedule C for 2019
-You have filed a Form 1040 Schedule F for 2019
-You were in operation on February 15, 2020
-You have a valid taxpayer identification number (TIN)
-You have paid federal income taxes in 2018 and 2019

Independent contractors

As an independent contractor, you are self-employed and report your income on a Form 1040, Schedule C, Profit or Loss From Business. If you also operate as a sole proprietor of an LLC that is treated as a sole proprietorship for tax purposes, you would use Schedule C to report the income or loss from that business as well. You are not an employee of your business and are not eligible for payroll protection under the PPP program.


The Paycheck Protection Program (PPP) is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.

Payroll documents

You will need to provide documentation of your payroll expenses for the time period you are requesting. This can be in the form of:
-A bank statement
-A loan account statement
-Payroll records
-Other documentation from your payroll provider

Tax documents

In order to apply for a PPP loan, you will need to submit various tax documents. The specific documents required will vary depending on your business structure, but may include:

– IRS Form 1040 for sole proprietors
– IRS Form 1120 or 1120S for corporations or LLCs
– IRS Form 990 for nonprofits
– Personal tax returns (if you are a self-employed individual or owner of an LLC)

These tax documents will be used to verify your business income and calculate the amount of the loan that you are eligible for.

Bank statements

To apply for a Paycheck Protection Program (PPP) loan, you’ll need to provide your bank statements from the most recent 12 months.

The Small Business Administration (SBA) will use your bank statements to verify your business’s average monthly payroll expenses. The PPP loan amount you’re eligible for is based on your business’s average monthly payroll expenses.

If you don’t have 12 months of bank statements, you can provide statements for a shorter time period. The SBA will prorate your loan amount based on the number of months of bank statements you provide.

You can get your bank statements from your online banking portal or by requesting them from your bank.

Application Process

The Paycheck Protection Program (PPP) is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.

SBA Form 2483

SBA Form 2483 must be completed by all small business applicants who wish to apply for a Paycheck Protection Program (PPP) loan. This form is used to collect information about your business, including contact information, business size, ownership structure, and more.

In addition to Form 2483, you will also need to provide the following documentation:
-Proof of small business status (e.g., tax filing, articles of incorporation)
-Proof of business activity (e.g., business license, permit)
-Most recent financial statements
-Personal financial statements for each owner with 20% or more ownership stake

Lender Form

To apply for a PPP loan, you must complete and submit a lender form to your chosen lender. The form includes basic information about your business, such as contact information, business location, ownership details, and tax information. You will also need to provide financial information, such as your average monthly payroll costs and your annual income. Once you have submitted the form, your lender will review it and decide whether or not to approve your loan.

Personal Guarantee

The SBA will guarantee 100% of the PPP loan if it is made to a small business owner or the self-employed. For loans made to businesses with 500 or fewer employees, the SBA will guarantee 75% of the loan. The law also allows for nonprofit organizations and veterans organizations to apply for a PPP loan.

Loan Forgiveness

The Paycheck Protection Program (PPP) loan is a forgivable loan given to small businesses to help them cover their operating costs during the COVID-19 pandemic. The PPP loan is forgiven if you use it for eligible expenses, such as payroll, rent, and utilities, and you maintain or restore your full-time employee headcount and salary levels. You can apply for a PPP loan if you are a small business, nonprofit organization, veterans organization, or Tribal business concern with 500 or fewer employees.

Covered Period

The eight-week period beginning on the date that your first loan is disbursed (or, if you choose, the first day of your first payroll cycle to begin after your loan is disbursed). This is the period during which you must spend the loan proceeds to maximize loan forgiveness.

Eligible Expenses

The Paycheck Protection Program allows small businesses and nonprofits to apply for low-interest loans of up to $10 million. These loans can be used to cover payroll and other operating expenses like rent and utilities.

To be eligible for loan forgiveness, you must use the loan proceeds for eligible expenses and meet certain other requirements. For example, you must maintain employee headcount and salary levels, as well as certain business activity levels.

Eligible expenses include:
-Payroll costs (including salary, wages, tips, vacation pay, parental leave, health insurance, and retirement benefits)
-Rent or lease payments on business property
-Utilities (electricity, water, gas)
-Interest on business mortgage loans
-Business loan payments


The Paycheck Protection Program (PPP) loans are available to small businesses and sole proprietorships, as well as independent contractors and self-employed individuals, who maintain a payroll. In order to be eligible, your business must have been in operation on February 15, 2020 and must have paid salaries and payroll taxes.

What if I don’t have all the required documentation?

If you do not have all of the required documentation, the SBA will consider your application incomplete. The SBA may contact you for additional information.

What if my business is not eligible?

If your business is not eligible for a PPP loan, you may be able to apply for an EIDL through the SBA. You can visit their website to learn more and complete an application.

How long does the process take?

The process generally takes about 10 days from the time you submit your application until you receive your loan.

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