Who Qualifies for the PPP Loan?
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The PPP loan is a federal initiative to help small businesses keep their workers employed during the COVID-19 pandemic. But who actually qualifies for this loan?
Checkout this video:
Who is eligible for the PPP loan?
The Paycheck Protection Program is a loan designed to help small businesses keep their workers on the payroll during the coronavirus (COVID-19) pandemic.
To be eligible, you must:
-Be a small business with 500 or fewer employees
-Have been in operation on February 15, 2020
-Have experienced a decrease in revenue of 25% or more due to the pandemic
How do I apply for the PPP loan?
1. SBA Form 2483 (7/20) – Borrower Application Form
2. IRS Form 4506-T (9/15) – Request for Taxpayer Transcript
3. PersonalFinancialStatement (SBA Form 413) Dated Within 60 Days Prior to the Application Date
4. OtherDocumentationThe Lender May Require
What are the requirements for the PPP loan?
To be eligible for a PPP loan, you must:
-Be a small business owner, self-employed individual, or independent contractor
-Have a Social Security number
-Have been in business for at least 2 years
-Have annual revenue of less than $500,000
-Use the loan for eligible expenses, such as payroll, rent, and utilities
What are the terms of the PPP loan?
The PPP loan has a 1% interest rate and terms of 2 years. You can apply for the loan through any SBA-approved lender.
To be eligible, you must have been in business as of February 15, 2020, and must have paid salaries and payroll taxes. Businesses that are sole proprietors, independent contractors, or self-employed individuals are also eligible.
What are the benefits of the PPP loan?
The Paycheck Protection Program (PPP) is a loan designed to help small businesses keep their workers on the payroll during the coronavirus (COVID-19) pandemic.
The loan is 100% forgiven if:
-You use it for eligible payroll costs, rent, mortgage interest, or utilities
-You don’t laid off any employees (or, if you did have to laid off employees, you rehired them by June 30, 2020)
-You don’t reduce any employee’s wages by more than 25%
-You maintain or restore your pre-pandemic number of full-time equivalent employees through December 31, 2020.
