How much PPP money can a business get?

Here are a few key facts about the first round of PPP loans: Qualified businesses could receive 2.5 times their average monthly payroll costs up to $10 million. Business owners could get their loans forgiven if they used at least 60% of the money to cover payroll costs.

Do businesses need to repay PPP?

The only way you will have to pay back all or part of a PPP loan is if you don’t use it for the specific items outlined above. Initially, no more than 25% of the forgiven amount could be used to cover non-payroll costs if you wanted your PPP loan completely forgiven.

Can my business get PPP?

Sole proprietorships and contractors Sole proprietorships, contractors, and gig-workers are eligible for a PPP loan amount based on their net income. Contractors in operation on February 15, 2020 can apply for the PPP using a completed Schedule C for 2020.

Is PPP for independent contractors?

Paycheck Protection Program (PPP) loans aren’t just for traditional run-of-the-mill small businesses—self-employed business owners, independent contractors, and freelancers can take advantage of this forgivable, tax-free funding.

What if PPP loan is not forgiven?

PPP loans are designed to cover payroll-related costs and other select operating costs. If your PPP loan forgiveness is denied, contact your lender. You can request the SBA review a lender’s decision denying forgiveness within 30 days of the denial.

How are you supposed to spend your PPP funds?

You [&need&] to spend the [&PPP&] on the approved categories. If you stray outside the intended guidelines, you could be subject to scrutiny (and in severe cases, charged with fraud). When you receive the [&PPP&] loan, you agree to only spend the funds on certain things.

Can a small business get a PPP loan?

Typically a small business with 500 employees or less is eligible to apply for a PPP loan. There are some exceptions to this rule based on the type, number of locations and revenue of some businesses. You can go to www.sba.gov/size for the industry size standards to see if your business qualifies. I work for myself, am I eligible for a PPP loan?

How are PPP funds used in SBA account?

PPP funds approved and authorized by the SBA will be deposited into the account that you designated on your application. How should I use a PPP loan? That depends. If you’re looking for total loan forgiveness, you’re required to use 60% of the funds for eligible payroll costs to remain eligible for full loan forgiveness.

Can a business expense be forgiven on a PPP loan?

Most legitimate business expenses may be approved, but not every expense that you’ll have for your business is forgivable. We’ll walk you through what you can use your PPP loan for and what expenses can be forgiven.

What can you do with a PPP loan?

Your PPP loan funds can be used for any legitimate business expense of the type your business incurred prior to February 15, 2020. That doesn’t mean that you spend the money on expenses you had before that time, but rather that you can only spend your PPP money on the types of business expenses you had up to that point.

Most legitimate business expenses may be approved, but not every expense that you’ll have for your business is forgivable. We’ll walk you through what you can use your PPP loan for and what expenses can be forgiven.

How to get a PPP loan from SBA?

SBA is currently offering PPP loans until May 31, 2021. President Biden announced program changes to make access to PPP loans more equitable. 1. Find a lender: Get matched with a lender; Search for lenders in your area; 2. Identify a loan: First Draw PPP loans: If you have not received a PPP loan before, First Draw PPP loans are available to you.

Can a credit card be used as a PPP expense?

No, payments on credit card balances, merchant loans, or other forms of debt are not allowed PPP expenses. The interest on business mortgage payments is allowed. Acceptable examples of a business mortgage include: Mortgage interest on a warehouse you own to store business equipment