Notice: PPP ended May 31, 2021
The PPP ended on May 31, 2021. Existing borrowers may be eligible for PPP loan forgiveness.
PPP is a type of loan intended to directly incentivize small businesses to maintain payroll for their employees. In addition to paying for mortgage interest, rent, utilities, worker protection costs associated with COVID-19, uninsured property damage costs resulting from looting or vandalism in 2020, and some supplier costs and operating expenses, First Draw PPP loans can be used to help fund payroll costs, including benefits.
If all employee retention requirements are satisfied and the money is used for approved expenses, the SBA will forgive loans.
- PPP loans have an interest rate of 1%.
- Loans made before June 5, 2020, have a two-year maturity. The term of loans issued after June 5, 2020 is five years.
- If a borrower requests loan forgiveness, their loan payments will be postponed until the SBA sends the borrower’s loan forgiveness amount to the lender. Payments are postponed for ten months following the conclusion of the borrower’s eligible period for loan forgiveness (between eight and twenty-four weeks) if the borrower does not apply for loan forgiveness.
- No collateral or personal guarantees are required.
- There are no fees that the government or lenders will impose on small businesses.
The following entities affected by COVID-19 may be eligible:
- Sole proprietors, independent contractors, and self-employed persons
- Any small business that satisfies the industry size standard or the alternative size standard set by the SBA
- Any enterprise, non-profit 501(c)(3), veterans organization 501(c)(19), or tribal business concern (sec 31(b)(2)(C) of the Small Business Act) with 500 employees or, in the event that 500 is greater, that which satisfies the SBA industry size standard.
- Any company that employs fewer than 500 people per location and has more than one physical location and a NAICS code beginning with 72 (Accommodations and Food Services)
How and when to apply
Regardless of the lender or borrower, all new First Draw PPP loans will have the same conditions.
Download the PPP borrower application form below to see what details a lender will need from you before you submit an application. This will help you get started with the application process.
Supplemental materials
Affiliation rules
Reapplying and loan increases
If, by December 27, 2020, current PPP borrowers were not granted loan forgiveness, they may:
- If they have already returned all or part of the money from their First Draw PPP loan, they can reapply for a loan.
- If they previously did not accept the entire amount for which they are eligible, they may, in certain cases, request to change the amount of their First Draw PPP loan.
Usually, lenders choose when to send SBA individual PPP loan applications. Therefore, you should contact your lender with any queries or worries you may have about specific PPP loan applications.
After their lender submits their application to the SBA, borrowers can track the status of their loan by creating an account in the SBA Capital Access Financial System (CAFS). Get account enrollment instructions.
Please get in touch with your lender for further information if you have any questions about the status of your PPP loan or if data anomalies have caused your PPP loan application to be flagged.
Information about the First Draw PPP loan in other languages
Applications must be submitted in English. To assist you in understanding eligibility requirements, completing applications, and finding answers to frequently asked questions, we offer documents in 17 different languages.
FAQ
How does a PPP loan work?
Money is given in the form of loans, which will be fully forgiven when they are used for things like rent, utilities, interest on mortgages, and payroll expenses (because of the likely high subscription, at least 25% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months.
Do you have to pay back a PPP loan?
Yes. PPP loans may be completely forgiven, meaning they are not required to be repaid. This includes both the principal amount and any accumulated interest. You must repay the loan if you do not apply for forgiveness.
Is PPP a loan or free money?
An SBA-backed loan that supports companies in keeping workers during the COVID-19 pandemic Notice: On May 31, 2021, the Paycheck Protection Program (PPP) came to an end. Existing borrowers may be eligible for PPP loan forgiveness.
Who is not eligible for a PPP loan?
Forever closing your business precludes you from being eligible for a PPP loan. You might still be eligible even if you momentarily stopped operating your business or closed it.
Read More :
https://www.sba.gov/funding-programs/loans/covid-19-relief-options/paycheck-protection-program/first-draw-ppp-loan
https://home.treasury.gov/policy-issues/coronavirus/assistance-for-small-businesses/paycheck-protection-program