What expenses does PPP cover?
Your PPP loan funds can be used to cover payroll expenses so that you can keep your business staffed. You must use at least 60% of your loan to cover payroll costs to qualify for forgiveness. The remaining 40% can be used on mortgage interest, utilities, rent, and other expenses that we’ll detail in this article.
What can self employed use PPP loan for?
Outside of Owner Compensation Replacement, there are stricter requirements for self–employed PPP recipients to qualify for forgiveness. The categories that are eligible for loan forgiveness are: Rent on office space and equipment. Business utilities like gas, water, cable, software and Internet.
What qualifies for PPP forgiveness?
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.
When should I apply for PPP forgiveness?
You must apply for forgiveness within 10 months after the end of the ‘Covered Period. ‘ which is the 24-week period that starts when you received your PPP loan. The lender (i.e. your bank) has 2 months to process your loan forgiveness application then SBA has three additional months to approve your forgiveness.
Can self employed with no employees get PPP loan?
For sole proprietors or independent contractors with no employees, the maximum possible PPP loan is therefore $20,833, and the entire amount is automatically eligible for forgiveness as owner compensation share.
Will PPP loans be forgiven for self employed?
Under the new interim final rule, borrowers who received $50,000 or less in PPP loan funds and spent their loan proceeds on qualified expenses—including self–employed workers—automatically qualify for full loan forgiveness.
Can I use PPP to pay myself?
You can use the PPP funds to pay yourself through what’s called owner compensation share or proprietor costs. This is to compensate you for a loss of business income. You’ll be considered to be fully covered during the 8 to 24 week covered period.
What are the new rules for PPP loan forgiveness?
Borrowers that receive a PPP loan of $150,000 or less shall receive forgiveness if the borrower signs and submits to the lender a certification that is not more than one page in length, includes a description of the number of employees the borrower was able to retain because of the loan, the estimated total amount of
How long does PPP forgiveness take?
PPP Loan Forgiveness Deadlines and Amount Considerations
That’s because borrowers submit their forgiveness application to their lender, which has 60 days to approve or reject the application, which then sends it to the SBA for approval, a process which can take up to 90 days.
Is it too late to apply for PPP forgiveness?
30, 2020, has until Aug. 30, 2021, to apply for forgiveness before loan repayment begins. The SBA placed the expiration date in the upper-right corner of the PPP loan forgiveness application forms to comply with the Paperwork Reduction Act.
Has anyone received PPP forgiveness?
For the smallest borrowers with loans up to $50,000, 88% have been approved for forgiveness. The new data comes as the Paycheck Protection Program has recently re-opened as a result of the Economic Aid to Hard Hit Small Businesses, Nonprofits and Venues Act, signed into law by President Trump on Dec. 27, 2020.