Q:
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Who can apply for Paycheck Protection Program (PPP)?
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A:
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Businesses, non-profits, tribal businesses and veterans organizations with not more than 500 employees during covered period (February 15, 2020 – June 30, 2020) are eligible to apply the PPP loan. Individuals who operate as sole proprietors or as independent contractors and eligible self-employed individuals can also receive a loan. It will be necessary to provide documentation like a 1099-Misc or show income and expenses.
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Q:
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What is the maximum loan amount I can receive?
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A:
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The maximum loan amount is the lesser of: (1) Average monthly total of payroll costs incurred during the one year period before the date on which the loan was made (for seasonal employers, use the average monthly payments for the 12-week period beginning February 15, 2019 or March 1, 2019, and ending June 30, 2019) multiplied by 2.5; or (2) $10,000,000.
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Q:
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Any limitations for use of loan proceeds?
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A:
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You must use the PPP loan proceeds for payroll, Costs related to the continuation of group health benefits during periods of paid sick, medical or family leave, and insurance premiums, Employee salaries, commissions or similar compensation; Interest payments on mortgages; rent; utilities; and interest on other debt incurred before the covered period.
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Q:
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How can I apply for Paycheck Protection Program (PPP)?
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A:
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To apply for the loan, the applicant must submit SBA Form 2483 (Paycheck Protection Program Application Form) and payroll documentation. The lender must submit SBA Form 2484 (Paycheck Protection Program Lender’s Application for 7(a) Loan Guaranty) electronically in accordance with program requirements and maintain the forms and supporting documentation in its files.
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Q:
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Can my PPP loan be forgiven?
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A:
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Yes. In general, if the employer maintains the workforce, the SBA will forgive the portion of the loan proceeds that are used to cover the first 8 weeks (covered period) of payroll and certain other expenses following loan origination. To meet the forgiveness requirement, at least 75% of the loan proceeds must be spent on payroll during the 8-week period. Not more than 25% of the forgiveness can be attributable to non-payroll costs (e.g., mortgage, utilities and rent).
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FAQ
