Who Is Eligible For SBA PPP Loans?

What can I use my PPP loan for?

Generally, PPP funds can be used for four purposes: payroll, mortgage interest, rent/lease, and utilities.

Payroll should be the major use of the loan..

How long does it take kabbage to approve PPP loan?

Went with Kabbage for my PPP loan during the pandemic. Approved in less than 48 hours, but unable to get documentation sent to me or signed and have less than 24 hours to get some help or the funds will no longer be available. They give a max of 10 days to finalize the process or your out of luck.

Who should apply for a PPP loan?

Most small businesses should be able to qualify for the Paycheck Protection Program. If your business is based in the U.S., has 500 employees or less, and if your business is financially affected by COVID-19, you should be eligible for the PPP loan.

What happens if you don’t spend all of your PPP loans?

If you don’t spend at least 60% of your PPP loan on payroll costs then your loan forgiveness will be reduced. … Incurred, which means the payroll costs were incurred during the forgiveness window but the pay date fell after the end of the forgiveness window.

Can I get an SBA loan and PPP?

The SBA has two loan programs to help small businesses impacted by COVID-19: Economic Injury Disaster Loans (EIDL) and the Paycheck Protection Program (PPP). If your business is eligible, you can get both loans, using the funds simultaneously, as long as the use of funds are not the same.

What qualifies you for a PPP loan?

Who Qualifies for a PPP Loan? Any small business with 500 or fewer employees may be eligible. … (Partners who report self-employment income, however, are not eligible as self-employed individuals.) Restaurants and hospitality businesses may qualify if they have 500 or fewer employees per location.

Who is not eligible for a PPP loan?

Passive businesses owned by developers and landlords that do not actively use or occupy the assets acquired or improved with the loan proceeds (except as Eligible Passive Companies under 13 CFR § 120.111) are not eligible.

How do PPP loans work?

The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses. Click here to read more about PPP loan forgiveness.

Do you need an employee to qualify for PPP loans?

Sole proprietors and the PPP Since you don’t have employees, you won’t be reporting your payroll costs for the PPP loan. … According to the U.S. Treasury, “regardless of whether you have filed a 2019 tax return with the IRS, you must provide the 2019 Form 1040 Schedule C with your PPP loan application.”

How long do you have to be in business to get a PPP loan?

Generally, businesses that have fewer than 500 employees and have been in business since February 15, whether they’re an LLC, corporation, sole proprietor, or independent contractor are eligible. In our guide to the Payment Protection Program, you can find specifics on types of businesses.

What are the new PPP loan rules?

The PPP allows loan forgiveness for payroll costs — including salary, wages, and tips — for up to $100,000 annualized per employee, or $15,385 per individual over the eight-week period. The new interim final rule establishes the 24-week maximum for full loan forgiveness at $46,154 per individual.

Can owners salary be included in PPP?

Your payroll cost for the PPP will be the earnings that you are taxed on. … If you are the sole owner of a business taxed as an LLC, your salary for your PPP application should be the full amount of your business’ net profit in 2019, and you should leave your member draws out of the calculation entirely.

How do I get a PPP loan?

You can apply for your PPP loan through any of the 1,800 participating SBA approved 7(a) lenders or through any participating federally insured depository institution, federally insured credit union, and Farm Credit System institution.

Should I apply for PPP?

Even though funds can be depleted, it’s still a good idea to apply for a PPP loan. Applying as soon as possible means that when the program receives additional funding, your application will already be in the queue. As the PPP gets more funding, you want your application to be at the front of the line.

How much can you borrow PPP?

What Is the Maximum Amount of a PPP Loan? The maximum amount of money you can borrow through the PPP is 2.5 times your average monthly payroll costs, up to a maximum of $10 million. That means, for example, if your average monthly payroll in the last 12 months was $100,000, you could borrow up to $250,000.