What does PPP stand for?

What does PPP stand for?

The Paycheck Protection Program (PPP) is a loan designed to provide a direct incentive for small businesses to keep their workers on payroll. Borrowers may be eligible for PPP loan forgiveness.

What does PPP mean for employees?

Paycheck Protection Program

Is there a PPP Grant?

As of December 2020, Congress has changed the provisions surrounding Economic Injury Disaster Loan (EIDL) grants and PPP loans. Now businesses that are eligible to receive EIDL grants up to $10,000 while also having first- and second-draw PPP loans fully forgiven.

What is needed for PPP application?

Official PPP Loan Application Form

• Business name, DBA, business address, EIN/SSN, and contact information.
• Average monthly payroll (learn how to calculate your average monthly payroll yourself), loan request amount, number of employees, and loan purpose.

What is the new PPP program?

The administration of President Joe Biden announced Monday that it would institute a two-week period starting Wednesday during which only businesses with fewer than 20 employees will be able to apply for Paycheck Protection Program (PPP) loans.

How will the new PPP work?

The new PPP authorization creates a simplified forgiveness process for borrowers who received loans less than $150,000. PPP funds used on payroll costs, rent, utilities and mortgage interest in the 8 to 24 weeks after receiving the loan are forgivable. This means you won’t be required to repay that portion of the loan.

What counts for PPP forgiveness?

Requirements for PPP loan forgiveness In order for your loan to be fully forgiven, at least 60% must be spent on payroll costs. The covered period for most loans made in 2020 is 24 weeks after your loan is disbursed, but borrowers with loans issued before June 5, 2020, may opt for the original eight-week period.

What is the 24 week period for PPP?

Covered Period – begins on the date the loan proceeds are disbursed and ends 8 weeks (56) days from that date. If 24 weeks, it begins on the date the loan proceeds are disbursed and ends 24 weeks (168 days) from that date.

What can PPP money be used 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.

What are the steps for the PPP loan?

SBA PPP: Steps To Take Before You Apply

1. Confirm you qualify.
2. Get the SBA application and review your lender requirements.
3. Gather your business and business owner information and necessary documentation.
4. Gather your payroll and relevant financial documentation.
5. Determine which employees are eligible for loan forgiveness.
6. Calculate your loan amount.