Question

4. What are some of the requirements for businesses to qualify for a loan under the Federal government’s Paycheck Protection Program (PPP)?

Answer 1

Paycheck protection program is a loan provided by small business administration. It now aims at helping businesses to keep their workforce employed during the Covid -18 crisis. Inorder to qualify for PPP ,businesses must satisfy the following criteria.

> The business must meet the size standards prescribed by SBA ( small business administration)

> Any business, 501(c)(3) non profit organization, 501(c)(19) veterans organization, or Tribal business concern ( sec 31(b)(2)(c) of the ( small business Act ) with grater of :

* 500 Employees or.

* That meets the SBA industry size standard if more than 500

> Any business with NAICS mode that begins with 72 ( Accommodations and Food service) that has more one physical location and employs less than 500 per location.

> Sole priorities, independent contractors, and self employed persons.

The loan will be fully forgiven if the funds are used for payroll costs, Interest on mortgages,rent and utilities by the businesses.