PPP loans

Extracted Attributes

• Total Funding

  $953 billion

• Loan Interest Rate

  1%

• Maximum Loan Amount

  2.5 times average monthly payroll costs

• Administering Agency

  U.S. Small Business Administration (SBA)

• Forgiveness Requirement

  At least 60% of forgiven amount must be used for payroll

• Establishing Legislation

  Coronavirus Aid, Relief, and Economic Security Act (CARES Act)

• Estimated Cost per Job Saved

  $169,000 to $258,000

Timeline

• The CARES Act is enacted, authorizing the initial $349 billion for the Paycheck Protection Program. (Source: Web Search (Jackson Lewis))

  2020-03-27

• Small businesses and sole proprietorships begin applying for PPP loans through SBA lenders. (Source: Web Search (Jackson Lewis))

  2020-04-03

• The original deadline for businesses to apply for a PPP loan. (Source: Wikipedia)

  2021-03-31

• The Paycheck Protection Program officially ends. (Source: Web Search (SBA.gov))

  2021-05-31

Paycheck Protection Program

The Paycheck Protection Program (PPP) is a $953-billion business loan program established by the United States federal government during the Trump administration in 2020 through the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to help certain businesses, self-employed workers, sole proprietors, certain nonprofit organizations, and tribal businesses continue paying their workers. The Paycheck Protection Program allows entities to apply for low-interest private loans to pay for payroll and certain other costs. A PPP loan allows a business applicant to receive funds up to 2.5 times the applicant's average monthly payroll costs. Sometimes, an applicant may receive a second draw typically equal to the first. The loan proceeds to cover payroll costs, rent, interest, and utilities. The loan may be partially or fully forgiven if the business keeps its employee counts and employee wages stable. The U.S. Small Business Administration implements the program. The deadline to apply for a PPP loan was March 31, 2021. Some economists have found that the PPP did not save as many jobs as purported and aided too many businesses that were not at risk of going under. They noted that other programs, such as unemployment insurance, food assistance, and aid to state and local governments, would have been more efficient at strengthening the economy. The program was criticized for its exorbitant cost, costing approximately $169k – $258k per job saved, and that the majority of benefits flowed to small-business owners, their creditors and their suppliers rather than to workers. It is estimated that only 25% of the funding allocated went to jobs that would have been lost. Supporters of the program note that the PPP functioned well to prevent business closures and cannot be measured on the number of jobs saved alone. By one estimate, the PPP reduced mortgage delinquencies by $36 billion in 2020.

Web Search Results

• First Draw PPP loan | U.S. Small Business Administration

  ## Loan details PPP is a loan designed to provide a direct incentive for small businesses to keep their workers on payroll. First Draw PPP loans can be used to help fund payroll costs, including benefits, and may also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations. SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses. ### Who may qualify The following entities affected by COVID-19 may be eligible: ## How and when to apply All new First Draw PPP loans will have the same terms regardless of lender or borrower. [...] If you wish to begin preparing your application, download the following PPP borrower application form to see the information that will be requested from you when you apply with a lender: ### Supplemental materials ### Affiliation rules ## Reapplying and loan increases Existing PPP borrowers that did not receive loan forgiveness by December 27, 2020, may: ## Existing borrowers Lenders typically decide when to submit individual PPP loan applications to SBA. Therefore, any questions or concerns regarding individual PPP loan applications must be directed to your lender. Borrowers who have had their application submitted to SBA by their lender can create an account in the SBA Capital Access Financial System (CAFS) to monitor their loan status. Get account enrollment instructions. [...] If you are unsure about your PPP loan status, or if your PPP loan application has been flagged due to data anomalies, please contact your lender to get more information. ## Information about the First Draw PPP loan in other languages Applications must be submitted in English. We provide documents in 17 different languages to help you understand eligibility requirements, fill out applications, and answer frequently asked questions. ### Footer navigation ### Sign up Receive information about upcoming SBA events, news alerts, and program updates. \ indicates a required field Your information will only be used in accordance with our website privacy policy. U.S. Small Business Administration 409 3rd St., SW Washington, DC 20416 800-827-5722

• What is the Paycheck Protection Program (PPP) Loan? - TurboTax Tax Tips & Videos

  Small business owner talking on the phone outside his workshop. Congress passed the Paycheck Protection Program (PPP) loan as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act to provide fast and direct economic assistance for small businesses and to preserve jobs for Americans. This loan has allowed many small businesses to stay afloat during the sudden economic recession in 2020 and its aftereffects in 2021. The program provided small businesses with funds to pay for: If the loan recipient uses the loan for these purposes and at least 60% of the forgiven amount is used on payroll expenses, the Small Business Administration (SBA) should fully forgive the loan. For unforgiven loans, payments will be deferred for six months. [...] According to the SBA, in order to receive full loan forgiveness, you must use the funds must be used for payroll costs, interest on mortgages, rent and utilities with at least 60% of the forgiven amount going toward payroll. The terms of this loan will be the same regardless of lender and borrower: ### What are the stipulations for loan forgiveness? Because the PPP loan focuses on delivering immediate economic assistance to small businesses affected by the sudden economic recession, forgiveness is based on the employer maintaining or quickly rehiring employees, as well as maintaining existing compensation levels. [...] ### How do you qualify for the PPP Loan, and what can you receive? The Paycheck Protection Program offers small businesses a loan in a time of extreme need. The following types of entities may qualify for a loan: The amount you can receive depends on your payroll expenses, incurred and paid, during the previous 12-month period on employees who principally reside in the U.S. The amount is limited to a maximum annual amount of $100,000 per employee/payee. After you determine your 12-month payroll expenses, For example, ### What can the PPP loan be used for, and what are the terms?

• Paycheck Protection Program Loans: Basics for Small Businesses, Sole Proprietorships - Jackson Lewis

  Businesses in certain industries that have more than 500 employees may still qualify for a PPP loan if they meet applicable SBA employee-based size standards for those industries. Additionally, a special eligibility rule provides that employers assigned a North American Industry Classification System code beginning with 72 (accommodations and food services) with not more than 500 employees per physical location of the business concern are eligible to receive a PPP loan. [...] PPP loan funds may be used for: #### Loan Forgiveness A PPP loan will be forgiven in an amount equal to what the borrower spent on the permissible uses described above during the eight-week period starting from the date of the first disbursement of loan proceeds. However, subsequent guidance provides that the “finite appropriations and the structure of the [CARES] Act warrant a requirement that borrowers use a substantial portion of the loan proceeds for payroll costs,” and, therefore, that no more than 25% of the forgiven amount may be for non-payroll costs. [...] ## Secondary Menu ## Main navigation # Paycheck Protection Program Loans: Basics for Small Businesses, Sole Proprietorships Melissa Ostrower headshot Robert Perry headshot The Paycheck Protection Program (PPP), a federal loan program administered by the Small Business Administration (SBA), aims to provide funding to small businesses substantially affected by the COVID-19 public health crisis so they can maintain payroll and cover critical business expenses. Small businesses and sole proprietorships can apply for these loans through any existing SBA lender starting on April 3, 2020. Congress authorized up to $349 billion for PPP loans as part of the CARES Act, which was enacted March 27, 2020. Future requests for additional appropriations of $250 billion are anticipated.

• Paycheck Protection Program | U.S. Small Business Administration

  Learn more about PPP loan forgiveness ## PPP lender information Information and resources for lenders participating in the Paycheck Protection Program (PPP). Get information for PPP lenders ## PPP data SBA maintains access to data for all its current and past COVID-19 relief programs, including the Paycheck Protection Program (PPP). Download PPP reports ## First Draw PPP loan If you did not receive a Paycheck Protection Program (PPP) loan before, First Draw PPP loans may have been available to you. Read about First Draw PPP loans ## Second Draw PPP loan If you previously received a Paycheck Protection Program (PPP) loan, certain businesses were eligible for a Second Draw PPP loan. Read about Second Draw PPP loans ## Get help with your PPP loan [...] SBA offers free counseling and training events to help you with the Paycheck Protection Program (PPP). Get help with a PPP loan [...] An official website of the United States government Here’s how you know Official websites use .gov A .gov website belongs to an official government organization in the United States. Secure .gov websites use HTTPS A lock ( ) or means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites. # Paycheck Protection Program Get information about the SBA loan program that helped businesses keep their workforce employed during the COVID-19 crisis. ## Notice: The Paycheck Protection Program (PPP) ended on May 31, 2021. Existing borrowers may be eligible for PPP loan forgiveness. ## PPP loan forgiveness Borrowers may be eligible for Paycheck Protection Program (PPP) loan forgiveness.

• Paycheck Protection Program (PPP) FAQs | Bank of America

  For second draw PPP loan forgiveness applications, you may be required to provide revenue reduction documentation if your loan was $150,000 or less and you did not provide such revenue reduction documentation prior to your forgiveness application. The SBA requires borrowers using Form 3508 and Form 3508EZ to submit documentation in connection with their loan forgiveness application. You will not be eligible to receive loan forgiveness without supporting documentation. For detailed information on the application, including Covered Periods, the type of costs that are eligible for forgiveness, and what documentation you will need to submit in connection with your application, please visit the U.S. Treasury and SBA websites. [...] that received a PPP loan before June 5, 2020 and elect to use an eight-week Covered Period, this cap is $15,385 per individual or the 8-week equivalent of their applicable compensation in 2019 (whichever is lower) in total across all businesses in which he or she has an ownership stake. If their total compensation across businesses that receive a PPP loan exceeds the cap, owners can choose how to allocate the capped amount across different businesses [...] How is the amount of owner compensation that is eligible for loan forgiveness determined? What if I am an owner of multiple businesses with multiple PPP loans?The applicable IFRs and FAQs provide that the amount of compensation of owners who work at their business that is eligible for forgiveness depends on the business type and whether the borrower is using an eight-week or 24-week Covered Period. The amount of loan forgiveness requested for owner-employees and self-employed individuals’ payroll compensation is capped at the lesser of $20,833 per individual or the 2.5-month equivalent of their applicable compensation in 2019 (whichever is lower) in total across all businesses in which he or she has an ownership stake. For borrowers that received a PPP loan before June 5, 2020 and elect