Question: Can You Amend Your PPP Application?

Can I use my PPP loan for anything?

PPP loans can be used for the following purposes: (a) “payroll costs” (defined in Question 17); (b) costs related to the continuation of group health benefits during periods of paid sickness, medical, or family leave, insurance premiums; (c) mortgage interest payments (but not prepayments or principal payments); (d) ….

When should I apply for PPP forgiveness?

Borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from loan origination.

Can I redo my EIDL application?

SBA is aware that some EIDL applications will be duplicates that seek only an advance grant and should be able to screen your second application accordingly. Contact my nearest office for assistance or clarification.

Should I give back PPP loan?

If you borrowed $2 million or more and aren’t certain you can convincingly demonstrate good faith, you should return the funds immediately to avoid any potential auditing and legal troubles (at the very least, you won’t qualify for loan forgiveness and will be expected to repay the loan).

How long do PPP loans last?

PPP loans have an interest rate of 1%. Loans issued prior to June 5 have a maturity of 2 years. Loans issued after June 5 have a maturity of 5 years. Loan payments will be deferred for six months.

Can I apply for PPP and Eidl?

The SBA has two loan programs to help small businesses impacted by COVID-19: Economic Injury Disaster Loans (EIDLs) and the Paycheck Protection Program (PPP). If your business is eligible, you can get both of these loans and use the funds at the same time, as long as you don’t use them for the same purpose.

Does Eidl affect PPP forgiveness?

The EIDL Grant funds can be used for maintaining payroll, providing sick leave to employees, rent or mortgages payments, and paying other obligations that cannot be paid due to lost revenue. The EIDL Grant amount will reduce the amount of any loan forgiveness on a PPP loan also obtained by a borrower.

Can I modify my PPP loan amount?

In no event can the increased loan amount exceed the maximum loan amount allowed under the PPP Program, which is $10 million for an individual borrower or $20 million for a corporate group. Additionally, the borrower must provide the lender with the required documentation to support the calculation of the increase.

Can you submit multiple PPP applications?

Yes! There is no risk in applying with more than one lender. According to our lending partners, the SBA’s system will accept the first valid application that arrives, and automatically rejects subsequent ones. … The lender is able to send you closing documents and use the PLP to complete the loan process.

What if PPP loan amount is wrong?

You can either accept the amount that’s been given to you, or return the funds entirely. If you’re concerned about your large loan size, your only course of action is to speak with the lender who provided the loan—they may be able to work something out with you, but there are no guarantees.

Which is better PPP or EIDL?

EIDL has a higher interest rate than PPP (3.75% vs. 1%). You cannot use an EIDL for the same purpose as a PPP loan (payroll in the two months after receiving the loan). However, you can use the EIDL for payroll once you’ve exhausted the PPP after those two months have passed.

What if I made a mistake on my SBA loan application?

What if I made a mistake on my application? Call the SBA 1-800-659-2955, provide your application confirmation number, and explain what needs to be corrected.

How can I get my PPP forgiven?

Use the following tips on how to make sure your PPP loan is forgiven to get started:Use it for eligible expenses.Keep your employee headcount up.Don’t reduce an employee’s wages by more than 25%Document everything.Talk with your lender.Apply for loan forgiveness.

Can I use both PPP and Eidl?

The SBA has two loan programs to help small businesses impacted by COVID-19: Economic Injury Disaster Loans (EIDL) and the Paycheck Protection Program (PPP). If your business is eligible, you can get both loans, using the funds simultaneously, as long as the use of funds are not the same.

Should I apply for PPP?

Most small businesses should be able to qualify for the Paycheck Protection Program. If your business is based in the U.S., has 500 employees or less, and if your business is financially affected by COVID-19, you should be eligible for the PPP loan.

Can I return PPP if I get unemployment?

If you accept a PPP grant, you must use 75 percent for payroll and the rest for business expenses; since you are paying your own salary with the money, you cannot also claim Unemployment for the eight-week period covered by the PPP. Then you can go back on Unemployment.

How do you calculate PPP forgiveness?

PPP forgiveness calculationCalculate payroll and non-payroll costs. Line 1: Payroll costs. … Make adjustments for full-time equivalency* (FTE) and salary/hourly wage reductions. Line 5: Total salary/hourly wage reduction of more than 25% … Calculate potential forgiveness amounts. Line 8: Modified total (line 6 X line 7) … Arrive at the forgiveness amount.

Can I change my EIDL application?

Update About Your Economic Injury Disaster Loan Application Submitted to the U.S. Small Business Administration. … If you wish to apply for the Advance on your EIDL, please visit www.SBA.gov/Disaster as soon as possible to fill out a new, streamlined application.