Post by prantogomes141 on Feb 14, 2024 5:24:32 GMT
forgiveness? How do you apply for PPP loan forgiveness? Donna Fuscaldo Staff Writer at business.com The Paycheck Protection Program (PPP) provided much-needed relief to businesses of all sizes in 2020 and 2021. First-draw PPP loans were available for up to $10 million, with second-draw loans up to $2 million. Best of all, they were 100 percent forgivable for qualifying borrowers. PPP loans ended on May 31, 2021, and out of the 11.5 million loans issued, 10.5 million were forgiven. Here’s what you need to know about PPP loan forgiveness and how the application process works.
What is PPP loan forgiveness? The Paycheck Protection Program was created at the height of the pandemic to help small businesses survive. Congress empowered the Small Business Administration (SBA) to issue hundreds of billions of dollars in low-interest small Algeria Telemarketing Data business loans. Since then, the SBA reports that nearly $800 billion has been released to 8.5 million small businesses. The PPP loans are forgivable as long as the borrower uses the money for qualified expenses, including keeping staff on their payroll. It also can be used for certain operating expenses and other business costs associated with the pandemic.
Borrowers are welcome to seek loan forgiveness as soon as the proceeds have been used. They can apply anytime up to the loan’s maturity date, which is 10 months after the loan was issued. For example, businesses that took out PPP loans in January must start repaying in November if they haven’t been approved for loan forgiveness. “You have up until the loan matures if you are requesting forgiveness, but there is no incentive to wait,” said Alan Haut, the U.S. Small Business Administration’s district director for North Dakota. “You’ll have to start making payments if you apply after the deferment period.”
What is PPP loan forgiveness? The Paycheck Protection Program was created at the height of the pandemic to help small businesses survive. Congress empowered the Small Business Administration (SBA) to issue hundreds of billions of dollars in low-interest small Algeria Telemarketing Data business loans. Since then, the SBA reports that nearly $800 billion has been released to 8.5 million small businesses. The PPP loans are forgivable as long as the borrower uses the money for qualified expenses, including keeping staff on their payroll. It also can be used for certain operating expenses and other business costs associated with the pandemic.
Borrowers are welcome to seek loan forgiveness as soon as the proceeds have been used. They can apply anytime up to the loan’s maturity date, which is 10 months after the loan was issued. For example, businesses that took out PPP loans in January must start repaying in November if they haven’t been approved for loan forgiveness. “You have up until the loan matures if you are requesting forgiveness, but there is no incentive to wait,” said Alan Haut, the U.S. Small Business Administration’s district director for North Dakota. “You’ll have to start making payments if you apply after the deferment period.”