The second round of the Paycheck Protection Program (PPP) is under way as a measure to help small businesses affected by the coronavirus outbreak.
This program aims to provide small businesses with 2.5 times their average monthly payroll up to $10 million. Business owners must use the funds to keep their employees and pay other obligations, such as rent and utilities.
Here you will find the list of businesses that are eligible to apply for a Paycheck Protection Loan.
Businesses With Fewer Than 500 Employees
This is the most straightforward rule. If your business has fewer than 500 employees, then you’re eligible to apply for a PPP Loan.
Businesses that Meet SBA’s Size Requirements
Some businesses may qualify for a PPP Loan even if they have more than 500 employees. You can check whether your business is considered small accessing the Electronic Code of Federal Regulations here or using the online size standards tool provide by the SBA.
Additionally, a business can qualify for a PPP loan if it meets these two conditions:
- The maximum tangible net worth of the business is not more than $15 million
- The average net income after Federal income taxes (excluding any carry-over losses) of the business for the two full fiscal years before the date of the application is not more than $5 million
Sole Proprietors, Independent Contractors and Self-employed Individuals, including “Gig Workers”
Yes, independent contractors and “gig workers” such as Uber and Lyft drivers are also contemplated among those eligible for PPP loans.
These businesses are also eligible to apply for PPP loans:
- Non-profits under Section 501(c)(3) of the Internal Revenue Code of 1986 as amended (Internal Revenue Code), as long as that entity has fewer than 500 employees
- Veterans organizations under Section 501(c)(19) of the Internal Revenue Code that meet the SBA’s size requirements
- Tribal business entities that meet the SBA’s size requirements
- Hospitality or Food Service Businesses with fewer than 500 employees per physical location
Our mission at Uniko Biz solutions is helping all kinds of businesses find the right option to achieve their financial goals and keep their momentum going. With our help, your small business can thrive even during uncertain times.
We are located in Riverside, California. Contact us today by email or telephone (888-698-6456) to learn more about our services, our philosophy, and our commitment to working with you to overcome the challenges you face as a small business owner.