Who Gets PPP Money?

Can owners get paid under PPP?

As an owner of a corporation, this should only be the amount you have paid yourself by running payroll.

If you’ve been running payroll manually yourself or with the help of a CPA, so long as you have been remitting payroll taxes, you can use those salaries in your calculation to apply for the PPP..

What can I use PPP funds for?

The funds from the PPP can be used for the following purposes:Payroll—salary, wage, vacation, parental, family, medical, or sick leave, health benefits.Mortgage interest—as long as the mortgage was signed before February 15, 2020.More items…•

How is PPP calculated?

PPP loans are calculated using the average monthly cost of the salaries of you and your employees. … If your business existed prior to 2019, you should use your total payroll expenses from 2019, and divide the annual total by 12 to arrive at a monthly average. If your business was new in 2019, there are further nuances.

How can I get my PPP forgiven?

Use the following tips on how to make sure your PPP loan is forgiven to get started:Use it for eligible expenses.Keep your employee headcount up.Don’t reduce an employee’s wages by more than 25%Document everything.Talk with your lender.Apply for loan forgiveness.

When should I apply for PPP forgiveness?

Borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from loan origination.

Will PPP loans be forgiven?

WASHINGTON—The Small Business Administration will begin forgiving loans granted to small-business owners under the Paycheck Protection Program, the Treasury Department said Tuesday, following banks’ and borrowers’ complaints that the process had been bogged down.

Who qualifies for PPP money?

Most small businesses should be able to qualify for the Paycheck Protection Program. If your business is based in the U.S., has 500 employees or less, and if your business is financially affected by COVID-19, you should be eligible for the PPP loan.

How many times can you apply for PPP?

Can I get two different PPP loans? No. If you already received a PPP loan, you won’t be able to get a second one. However, if you have multiple businesses with different tax IDs, you can get PPP loans for your different businesses.

What documents are needed for PPP forgiveness?

For the payroll portion of your PPP loan, you will need to provide documents from your payroll provider and proof of paying employment taxes with IRS and state forms. Eligible payroll costs include salaries and wages, health benefits, and paid leave (i.e. vacation, parental, family, medical, or sick leave).

Can I use my PPP loan for anything?

PPP loans can be used for the following purposes: (a) “payroll costs” (defined in Question 17); (b) costs related to the continuation of group health benefits during periods of paid sickness, medical, or family leave, insurance premiums; (c) mortgage interest payments (but not prepayments or principal payments); (d) …