The second round of Paycheck Protection Program Loans has been officially approved, but questions about this relief provision still abound.
Below you will find the five most common among those questions, answered according the latest update (April 24, 2020) provided by the Small Business Administration (SBA).
What Are Paycheck Protection Program Loans?
The Paycheck Protection Program (or PPP) are loans that help small businesses hurt by the coronavirus outbreak. Above all, businesses must use the funds to keep their employees on the payroll and pay other obligations.
The SBA implements the PPP loans with support from the Department of the Treasury. In short, the program provides small businesses with funds to cover up to eight weeks of payroll costs, including benefits.
What’s the Story So Far With PPP Loans?
The initial round of $349 billion in loans ran dry amid various complaints. For example, small business owners felt the loans favored big corporations. Some of those problems were addressed and a $484 billion interim bill was approved this Friday. From that amount, $310 billion will replenish the PPP. This means that the SBA will resume accepting PPP loan applications starting Monday, April 27 10:30 AM EDT.
What Businesses Qualify for a PPP Loan?
Businesses with fewer than 500 employees qualify for the program. This also includes qualifying tax-exempt nonprofit organizations and tribal business concerns described in section 31(b)(2)(C) of the Small Business Act. Independent contractors or sole proprietors can be eligible for a loan under the PPP, if they satisfy applicable requirements
To get a clearer idea of the requirements and the application process for a PPP loan, you can take a look at the borrower application form here.
How Much Could I Get With a PPP Loan?
A PPP Loan provides your business with 2.5 times your total payroll expenses for the loan period, up to $10 million.
Can Paycheck Protection Program Loans Be Forgiven?
Yes. The amount of loan forgiveness will include payroll costs for individuals below $100,000 in annual income, mortgage and rent obligations, including interest and utility payments.
When applicable, PPP loans are forgiven after eight weeks from the date on which the lender gives you the funds of the loan for the first time.
At Uniko Biz Solutions we understand the needs of small businesses trying to navigate the uncertain conditions caused by the coronavirus pandemic. Our mission is to help you keep your business moving forward even during these unprecedented circumstances.
We are located in Riverside California. Reach out today by telephone ((888) 698.6456) or email (firstname.lastname@example.org) and make an appointment to discover more about the amazing growth opportunities we can provide.