To address the economic impact of the COVID-19 pandemic, the Coronavirus Aid, Relief and Economic Security Act (CARES Act) provides forgivable loans to help small businesses through a new paycheck protection program known as PPP loan 2021. A PPP loan created a direct incentive for small businesses to put their employees on the payroll. According to the guideline, if all employee retention criteria are met, and the funds are used for qualified expenses, the SBA will forgive the loan.
What is a PPP Loan?
A PPP loan created a direct incentive for small businesses to put their employees on the payroll. The loan is divided into two draws. First Draw PPP loans can be used to help fund payroll costs and can be used to pay employee salaries, other payroll costs, mortgage interest, rent interest, utilities, and other debt obligations. If you have previously obtained a PPP loan, some businesses are eligible for a second draw PPP loan.
Who can Apply for PPP Loan?
- Any business, non-profit organization, veteran organization, or tribal trade association
- Sole proprietors, independent contractors, and self-employed individuals
- Any business with a NAICS code begins with 72 (housing and food services), has more than one physical location and employs fewer than 500 per location
- Any small business that meets the SBA’s size standards
- The interest rate of PPP loan is 1%.
- No collateral or personal guarantee is required.
- Loans issued before June 5, 2020, have a maturity period of 2 years and Loans issued after June 5, 2020, have a maturity period of 5 years.
- Neither the government nor the lender will charge small businesses any fees.
- Loan payments will be deferred for borrowers who apply for loan forgiveness until the SBA remits the borrower’s loan forgiveness amount to the lender. If a borrower does not apply for loan forgiveness, payments are deferred 10 months after the end of the period covered for the borrower’s loan forgiveness (between 8 and 24 weeks).
PPP Loan application
» PPP loan round 1 – PPP 1st Round Borrower Application Form 2021
» The PPP loan round 2 – PPP 2nd Round Borrower Application Form
PPP Loan forgiveness
Check the Loan Forgiveness Terms and conditions, then go for ppp loan forgiveness application → Compile your all documentation → Submit the forgiveness form and documentation to SBA or your PPP lender → Continue to monitor your application.
Check details here – SBA PPP loan forgiveness US
PPP Loan list
Here is the list of PPP loan recipients by state: Over 11 million loans sanctioned by lenders and disclosed by the SBA.
|State||Total||$150k or less||$150k – $350k||$350k – $1m||$1m – 2m||$2m – 5m||$5m – 10m|
|District of Columbia||29,532||25,133||2,361||1,435||417||170||14|
|Northern Mariana Islands||919||837||51||22||8||1||0|
The womply ppp loan frauds list and list of recipients USA will be available here soon, loan application for self-employed 2022, 3508s
May 31, 2021
Yes. PPP loans issued before June 5, 2020, should be repaid in two years, and loans issued after that should be repaid in five years.