What businesses are eligible for new PPP?

Who is eligible for the new PPP program?

Under the ARPA (and the CARES Act), most small businesses or nonprofit organizations are potentially eligible to receive a PPP loan if the organization employs 500 employees or fewer. However, some entities could benefit from elevated employee caps established by the SBA for certain industries.

What businesses are eligible for second PPP?

Second-draw PPP loans are available to businesses, certain nonprofits, self-employed individuals, independent contractors, sole proprietors, housing cooperatives, small agricultural cooperatives, veterans’ organizations and tribal businesses.

When should I apply for PPP forgiveness?

Borrowers can apply for forgiveness any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred, and borrowers will begin making loan payments to their PPP lender.

What are the new rules for PPP loan forgiveness?

The “60/40 split” is still in effect: To receive maximum loan forgiveness, borrowers must spend at least 60% of their loan on eligible payroll costs, and no more than 40% on eligible non-payroll costs. SBA wrote in an interim final rule: “At least 60% of the PPP loan proceeds shall be used for payroll costs.

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Who is not eligible for PPP?

In general, if the applicant or the owner of the applicant is the debtor in a bankruptcy proceeding, either at the time it submits the application or at any time before the loan is disbursed, the applicant is ineligible to receive a PPP loan.

Can I apply for PPP twice?

There is no risk of being flagged for fraud for applying more than once. In fact, it’s a good idea to apply for your second PPP loan with multiple lenders to maximize your chance of obtaining funding.

Can I get a PPP loan for a new business?

If you started a new business in 2020, can you still get a PPP loan? Yes: but only if you were operational on February 15, 2020. Here’s everything you need to know about getting a PPP loan for a new business (and some alternative funding options).

What qualifies for PPP forgiveness?

For Borrowers

Paycheck Protection Program (PPP) borrowers may be eligible for loan forgiveness if the funds were used for eligible payroll costs, payments on business mortgage interest payments, rent, or utilities during either the 8- or 24-week period after disbursement.

What documents do I need for PPP loan forgiveness?

Requirements include:

  • Copies of canceled checks.
  • Bank statements with ACH information.
  • Utility bills.
  • Mortgage statements.
  • Lease agreements.
  • List of all employees on your payroll during the covered period.
  • Evidence that your employees were kept on payroll or rehired upon receiving the loan.

Has anyone received PPP forgiveness?

“Today’s news is a key indicator that the PPP is working for all small businesses across our Nation,” said SBA Administrator Jovita Carranza. … SBA has made payment on nearly 85% of the applications, forgiving over $100 billion. For the smallest borrowers with loans up to $50,000, 88% have been approved for forgiveness.

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