The Paycheck Protection Program has always provided loans that could be completely forgiven if the borrower requested forgiveness and was approved by the lender and the SBA. If you don't apply for forgiveness, or you are not approved, you still need to pay back the loan you took out.
Our PPP Forgiveness Portal is Now Open for All Borrowers!
If you applied for your PPP loan through Blueacorn, we are proud to announce that you are now able to apply for forgiveness through our new portal!
Yes. PPP loans (the full principal amount and any accrued interest) may be fully forgiven, meaning they do not have to be repaid. If you do not apply for forgiveness, you will have to repay the loan.
You are required to apply for forgiveness; it is not automatic. If your loan was funded directly through Prestamos CDFI, you will apply through your Sparks portal. If you applied for your PPP through BlueAcorn, you will apply for forgiveness through the BlueAcorn portal once it opens in late July (anticipated).
Unfortunately We Are No Longer Accepting Applications. We are currently unable to accept new applications for PPP loans, due to high volumes, limited SBA funds, and the program's upcoming 5/31 expiration.
PPP borrowers are eligible for up to 2.5x monthly payroll costs for their initial PPP loan, as well as any second draw.
Borrowers can apply for forgiveness any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred, and borrowers will begin making loan payments to their PPP lender.
However, if the business cannot pay the full amount, the lender will foreclose on the collateral pledged by the business. Your business assets may not have much value. In that case, the lender will abandon the collateral. Now the lender will ask you to pay the amount due based on the personal guarantee you signed.
EIDL Loan Forgiveness. EIDL loans cannot be forgiven. However, EIDL loans do have a deferment period. Any EIDL loan approved in 2020, 2021, and 2022 can be deferred up to 30 months from the date of the note.
Borrowers can apply for forgiveness any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred and borrowers will begin making loan payments to their PPP lender.
It's currently looking like the COVID-19 relief SBA programs will NOT be available come 2022. The Payment Protection Program (PPP) officially ended on May 31, 2021, and the COVID-19 Economic Injury Disaster Loan (EIDL) program is set to close on December 31, 2021.
If someone is found guilty of bank fraud, they can be fined up to $1 million or imprisoned for up to 30 years, or both. Documents for PPP loans are generally submitted to financial institutions, i.e. banks.
WHAT HAPPENS IF YOU MISS THE APPLICATION DEADLINE. If you don't apply for loan forgiveness within 10 months after the last day of your covered period, you'll be required to start making payments to your PPP lender at 1 percent interest, which started accruing when the loan was made.
Was ineligible for the PPP loan amount received or used the PPP loan proceeds for unauthorized uses. Is ineligible for PPP loan forgiveness in the amount determined by the lender in its full or partial approval decision issued to SBA.
Wire Fraud: If you used a device, like telephone, internet, etc, to defraud an institution in order to gain funds from a PPP loan – you can be convicted of wire fraud. Penalties for wire fraud can include a prison sentence up to 20 years, and in addition – restitution to anyone impacted.
The CARES Act doesn't specifically contain provisions for criminal enforcement of the Paycheck Protection Program. The Act simple says that PPP loan recipients who fail to retain employees, and fail to use funds for qualified expenses for loan forgiveness, have to repay the loan at an interest rate of 1%.
Borrowers can apply for a Second Draw PPP Loan until March 31, 2021, through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, eligible non-bank lender, or Farm Credit System institution that is participating in PPP.
Unlike other SBA loans, PPP loans are designed to be partially or fully forgivable, meaning you won't have to pay them back as long as you follow certain rules. Here are a few key facts about the first round of PPP loans: Qualified businesses could receive 2.5 times their average monthly payroll costs up to $10 million.
In the housing industry, a forgivable loan is a type of second mortgage. You don't have to pay this type of loan back unless you move before your loan term ends.
All PPP loans have an interest rate of 1%, with loans issued prior to June 5 maturing after two years and loans issued after June 5 maturing after five years. Basically, PPP loans issued before June 5, 2020, must be paid back in two years, and loans issued after that must be paid back in five years.
You can apply directly on their website at https://blueppp.net. If you are looking for a status on your Blue Acorn PPP loan, you must reach out directly to Blue Acorn through a trouble ticket at https://blueacorn.co/support/ Prestamos cannot provide you updates or information about your Blue Acorn PPP.
Like the first round, second-draw PPP loans are entirely forgivable if the funds are used for approved expenses between the 8-and-24-week “covered period” and fund disbursement is properly documented. To obtain forgiveness, employee and compensation levels must also be maintained during the covered period.
As long as you certify that you have spent, or will spend, the full amount of your first PPP loan on eligible expenses before your second draw PPP loan is funded, you can still qualify for a second draw loan.
Any interest paid on mortgage on property used for business purposes is an eligible expense that the PPP can be used for, and qualifies for forgiveness. Acceptable examples include: Mortgage interest on a warehouse you own to store business equipment. Auto loan interest on a car you own to make business deliveries.