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

The Paycheck Protection Program is a loan designed to provide the small businesses with a direct incentive to keep their workers on the payroll.

If all workers are kept on the payroll for eight weeks and the money is used for salaries, deposit, mortgage interest, or electricity, SBA may reimburse loans.

You can apply via any existing SBA 7(a) lender, or any participating federally insured depository institution, federally insured credit union, and Farm Credit System institution. Once they are approved and enrolled in the program, other regulated lenders will be available to make those loans. You should consult your local lender as to whether they are taking part in the programme.

For each employee, labor expenses are fixed at $100,000 on an annualised basis. Because of the probable high subscription, it is estimated that not more than 25 per cent of the amount forgiven will be for non-payroll expenses. Loan installments are extended to six months
All companies-like non-profits, veterans, tribal companies
Concerns, sole proprietorships, self-employed individuals and independent contractors – 500 employees or less may apply. Businesses in some industries can employ more than 500 people if they meet the applicable SBA employee size standards for those industries