Can I get a PPP loan to start a new business?
Entrepreneurs are regularly starting new businesses. … Under the new CARES Act and Paycheck Protection Program (PPP), businesses are able to apply for loans to help them mitigate the financial impacts of this crisis.
How long do you have to be in business to get a PPP loan?
If you’re applying for a PPP loan for the first time, here’s what you need to know: To qualify, your business must have been in operation since at least February 15, 2020. You also have to fit into one of the following groups: A small business or nonprofit organization with 500 or fewer employees.
Do you have to be a small business to get a PPP loan?
First Draw PPP Loans
The borrower must also be either a: Small business that, together with affiliates (if applicable), have 500 or fewer employees; Business with more than 500 employees that meets the SBA’s size standards (either the industry size standard or the alternative size standard);
Does your business have to be profitable to get a PPP loan?
You must have reported a net profit on your Schedule C in 2019 or 2020. If you also have employees on payroll, you do not need a net profit, but you must have payroll tax forms 940 and 941/944 for 2019 or 2020.
Can you go to jail for PPP loan?
Depending on the size of the PPP loan, this can result in a $5,000,000 fine and up to 10 years in prison. 18 U.S.C. § 1343: Wire Fraud. This can result in fines and up to 20 years in prison.
Can self employed with no employees get PPP loan?
For sole proprietors or independent contractors with no employees, the maximum possible PPP loan is therefore $20,833, and the entire amount is automatically eligible for forgiveness as owner compensation share.
Can you go to jail for 20000 PPP loan?
If the lie on your PPP loan is counted as deceiving a financial institution to profit, then you can be charged with bank fraud under U.S. Code Title 18 U.S.C. … Typically, for an individual facing a misdemeanor for this crime, the bank fraud punishment can be up to one year in jail and up to $4000 in fines.
Can I use my PPP loan for anything?
What can I spend my PPP funds on? Generally, PPP funds can be used for four purposes: payroll, mortgage interest, rent/lease, and utilities. Payroll should be the major use of the loan.
What documentation will I need for PPP forgiveness?
Start by gathering the following details and documentation:
- Name of your business: business legal name, DBA, trade name (if applicable)
- Business Tax Identification Number (TIN): Social Security number (SSN) or Employer Identification Number (EIN)
- SBA loan number.
- Your PPP loan amount.
- EIDL advance amount (if you got one)
Can I apply directly to SBA for PPP?
Currently, the EIDL application is accessible here, and can be submitted directly on the SBA website. The PPP application is also live and can be submitted directly with banks, credit unions, and fintech companies including Square and PayPal.