PPPL Flashcards

(26 cards)

1
Q

How much is authorized?

A

$350B

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What do the loan proceeds cover? (nonforgivable)

A

Anything

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What do forgivable loan proceeds cover?

P
MI
R
U

For how long?

A

Payroll
Mortgage Interest
Rent Utilities

8 weeks after the loan has been made

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Do employee and compensation levels have to be maintained?

A

Yes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What are the payroll costs capped at for EACH EMPLOYEE?

A

$100,000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Not more than __% of the forgiven amount may be for non-payroll costs

A

25%

This means 75% has to be payroll

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

How long are loan payments deffered?

Minimum & Maximum?

A

Min 6 months
Max 1 year

These are set by the lenders. If a client asks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

When can all businesses excluding independent contractors/self employed persons apply?

When can independent contractors/self employed persons apply?

A

4/3/2020

4/10/2020

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Who can issue these loans?

A

SBA Loan Representatives. Most banks will do this.

ONLY FDIC INSURED can do this

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Who can apply? (Employee #s)

A

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.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

When does the program end?

A

6/30/2020 or when the funds run out ($350B) whichever comes first.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

How many PPP loans can i take out?

A

only 1

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

I started my biz on 2/16/2020, can i apply?

A

No. Has to be in operation before 2/15/2020

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

How large can my loan be?

A

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%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

I’ve laid off employees, what will happen?

A

Number of Staff: Your loan forgiveness will be reduced if you decrease your full-time employee headcount.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

I laid off 50% of my workforce, can i hire them back and not be penalized?

A

: 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

17
Q

How can I request loan forgiveness?

A

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.

18
Q

What is my interest rate?

A

0.50% fixed rate.

19
Q

When do I need to start paying interest on my loan?

A

All payments are deferred for 6 months; however, interest will continue to accrue over this period

20
Q

When is my loan due?

21
Q

Can I pay my loan earlier than 2 years?

A

Yes. There are no prepayment penalties or fees

22
Q

Do I need to pledge any collateral for these loans?

A

No. No collateral is required.

23
Q

Do I need to personally guarantee this loan?

A

No. They’re guaranteed by the US Gov

24
Q

If they ask about the Economic Injury Disaster Loan (7a loan) - what do you do?

A

Refer them to the SBA website

25
What would disqualify myself if i am eligible?
``` Suspended/debarred Bankruptcy Indictment Incarcerated/probation/parole Last 7 years been convicted/plead guilty of a felony Not a U.S resident or permanent resident ```
26
Can i take out a 7a (EID) loan with the PPP loan?
Yes