Quick Answer: What Are The New PPP Rules?

Do PPP loans have to be repaid?

Yes.

PPP loans (the full principal amount and any accrued interest) may be forgiven, meaning they do not have to be repaid.

If you do not apply for forgiveness, you will have to repay the loan.

Businesses have up to 24 weeks from the date you received the loan to spend the funds and be eligible for loan forgiveness..

Will PPP loans be forgiven?

PPP loan borrowers are being steered toward forgiveness. … The CARES Act established the Paycheck Protection Program for small businesses experiencing difficulties amid the coronavirus. Generally, the loans are forgivable if at least 60% of the proceeds go to payroll expenses.

What documents are needed for PPP forgiveness?

To prove payroll costs you’ll need to provide: Federal payroll tax filings (IRS Form 941) Income, payroll, and unemployment insurance filings from your state. Receipts for employer contributions to group benefit plans. Receipts for any retirement plan contributions.

Who is eligible for the 24 week PPP program?

If you were assigned a PPP loan number on or before June 5, 2020, you now have the option of taking 24 weeks to spend the funds instead of eight weeks. Borrowers whose loan numbers were assigned after June 5 will automatically have a forgiveness period that is the shorter of: 24 weeks, or.

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.

Are PPP loans still available?

The Paycheck Protection Program has about $130 billion in remaining funds. … Small-business owners won’t be able to access that money after June 30, however. There are other options available to ailing businesses, but they may be limited or come with unfavorable terms.

What are the new rules for the PPP loan?

In general, PPP loans are forgivable if your business used at least 60% of the loan for eligible payroll costs over a span of 24 weeks. Non-payroll costs, including mortgage interest, business rent and utilities are also eligible for forgiveness, but the new rules tweak certain eligibility requirements.

What are the rules for the PPP loan forgiveness?

Forgiveness for self-employed individuals You are eligible to claim 2.5 months’ worth of your 2019 net profit to replace pay. If you didn’t have any other payroll expenses factoring into your PPP loan amount, this means that your entire PPP loan could be forgiven for the 24-week period.

Has anyone PPP been forgiven?

Agency has yet to forgive any Paycheck Protection Program loans and has been slow to prevent theft, watchdogs tell Congress. … SBA announced last week that it had received only 96,000 loan applications — less than 2 percent of the total number of loans — and has not processed any applications so far.

What is the deadline for PPP loan forgiveness?

October 31, 2020Question: The PPP loan forgiveness application forms (3508, 3508EZ, and 3508S) display an expiration date of 10/31/2020 in the upper-right corner. Is October 31, 2020 the deadline for borrowers to apply for forgiveness? Answer: No.