The Paycheck Protection Program (PPP) has proven to be the most popular coronavirus relief measure for small businesses: an up-to $2 million forgivable loan designed to keep employees on payroll.
How much can a business get from PPP?
The maximum amount of money you can borrow as a first-time PPP borrower is 2.5 times your average monthly payroll costs, up to a maximum of $10 million.
How do I calculate my PPP loan amount?
You’ll use your gross income—not your net income—to calculate your PPP loan amount. Take your gross income (not to exceed $100,000), divide it by 12, and multiply that number by 2.5 to get your loan amount.
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.
Do I still qualify for a PPP loan if I started my business in 2020?
If you started a new business in 2020, can you still get a PPP loan? Yes: but only if you were operational on February 15, 2020. Here’s everything you need to know about getting a PPP loan for a new business (and some alternative funding options).
How much can you get on a PPP loan?
Your maximum PPP loan amount will be 2.5 times your average monthly payroll costs, up to $10 million. You can only receive one PPP loan, so if you apply for a PPP loan you may consider applying for the maximum amount you are eligible for.
What is the maximum PPP salary amount for forgiveness?
Forgiveness is capped at 2.5 months’ worth of an owner-employee’s or self-employed individual’s 2019 or 2020 compensation (up to a maximum $20,833 per individual in total across all businesses).
What happens if my PPP loan is not forgiven?
If you find that you are ineligible for full or partial loan forgiveness you will need to pay back at least some of your PPP loan. … If you don’t apply for loan forgiveness, your loan payments will be deferred for 10 months after the end of your selected covered period (8 or 24 weeks, depending on your loan)
What if PPP loan is not forgiven?
PPP loans are designed to cover payroll-related costs and other select operating costs. If your PPP loan forgiveness is denied, contact your lender. … You can request the SBA review a lender’s decision denying forgiveness within 30 days of the denial.