Flashcards in PPPL Deck (26)
How much is authorized?
What do the loan proceeds cover? (nonforgivable)
What do forgivable loan proceeds cover?
For how long?
8 weeks after the loan has been made
Do employee and compensation levels have to be maintained?
What are the payroll costs capped at for EACH EMPLOYEE?
Not more than __% of the forgiven amount may be for non-payroll costs
This means 75% has to be payroll
How long are loan payments deffered?
Minimum & Maximum?
Min 6 months
Max 1 year
These are set by the lenders. If a client asks
When can all businesses excluding independent contractors/self employed persons apply?
When can independent contractors/self employed persons apply?
Who can issue these loans?
SBA Loan Representatives. Most banks will do this.
ONLY FDIC INSURED can do this
Who can apply? (Employee #s)
All businesses with 500 or fewer employees
Those with 500 or more can if they meet certain criteria. Need to go to SBA website for their determination if they meet the criteria of a small business.
When does the program end?
6/30/2020 or when the funds run out ($350B) whichever comes first.
How many PPP loans can i take out?
I started my biz on 2/16/2020, can i apply?
No. Has to be in operation before 2/15/2020
How large can my loan be?
Loans can be for up to two months of your average monthly payroll costs from the last year plus an additional 25% of that amount. Clients DO NOT HAVE TO TAKE THE EXTRA 25%
I've laid off employees, what will happen?
Number of Staff: Your loan forgiveness will be reduced if you decrease your full-time employee headcount.
I laid off 50% of my workforce, can i hire them back and not be penalized?
: You have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020
How can I request loan forgiveness?
You can submit a request to the lender that is servicing the loan
The request will include documents that verify the number of full-time equivalent employees and pay rates, as well as the payments on eligible mortgage, lease, and utility obligations. You must certify that the documents are true and that you used the forgiveness amount to keep employees and make eligible mortgage interest, rent, and utility payments. The lender must make a decision on the forgiveness within 60 days.
What is my interest rate?
0.50% fixed rate.
When do I need to start paying interest on my loan?
All payments are deferred for 6 months; however, interest will continue to accrue over this period
When is my loan due?
In 2 years.
Can I pay my loan earlier than 2 years?
Yes. There are no prepayment penalties or fees
Do I need to pledge any collateral for these loans?
No. No collateral is required.
Do I need to personally guarantee this loan?
No. They're guaranteed by the US Gov
If they ask about the Economic Injury Disaster Loan (7a loan) - what do you do?
Refer them to the SBA website
What would disqualify myself if i am eligible?
Last 7 years been convicted/plead guilty of a felony
Not a U.S resident or permanent resident