The Paycheck Protection Program is over, but there's still aid available for small businesses. The federal government's Paycheck Protection Program provided small-business owners with just under $800 billion in COVID-19 relief, according to the U.S. Small Business Administration.
We're unable to accept business transactions, including deposits and loans for business use. Any SBA or PPP loan will be rejected and sent back to the IRS.
Learn more. PPP borrowers are eligible for up to 2.5x monthly payroll costs for their initial PPP loan, as well as any second draw. If your business falls under NAICS code 72 (Accommodation and Food Services), you may qualify for up to 3.5x monthly payroll costs for a second draw. All second draws are limited to $2M.
Notice: PPP ended May 31, 2021
The PPP ended on May 31, 2021. Existing borrowers may be eligible for PPP loan forgiveness. SBA also offers additional COVID-19 relief.
SBA's COVID EIDL Program Closes on December 31, 2021: SBA Urges Small Business Owners to Apply without Delay for Agency's COVID Relief EIDL Loans and Loan Increases.
Notice: COVID EIDL is no longer accepting new applications
As of January 1, 2022, we are not able to accept new applications for COVID EIDL loans or advances. The U.S. Small Business Administration (SBA) will continue to review and approve Targeted Advance applications received prior to the December 31, 2021, deadline.
EIDL loan and Targeted Advance applications will be accepted until December 31 and will continue to be processed after this date until funds are exhausted.
In 2020 you are now making $500 in one week and $3,000 in another week. You can still pay yourself payroll of $2,000 per week for those two weeks.
You have up to 10 months from the end of your loan's covered period to apply for forgiveness before you become responsible for payments and interest. Under early versions of the PPP program, borrowers had only eight weeks after the date of the loan to spend the amounts they wanted forgiven.
Part of the Economic Injury Disaster Loan (EIDL) is what many are calling a grant up to $10,000 for those who submit an application for disaster assistance. It works more like an advance that does not require repayment—whether or not your loan application is approved.
Whether a PPP loan fraud case involves thousands, hundreds of thousands, or millions, defendants can receive prison sentences in these cases. If there is evidence of fraud, people can go to jail for a $20,000 PPP loan, just like someone whose PPP loan was $100,000 or $1 million.
The PPP application is also live and can be submitted directly with banks, credit unions, and fintech companies including Square and PayPal. Both the SBA and banks should be able to begin taking new PPP and EIDL applications in the coming days, in the wake of Congress's approval of these new funds.
A third round of Paycheck Protection Program (PPP) loans was authorized by the passage of H.R. 133: Consolidated Appropriations Act, 2021 into law on Dec. 27, 2020. ... Business owners can still apply for an EIDL loan but PPP loans are no longer available.
In short, bankruptcy may offer a solution for those unable to repay unforgiven PPP loans, and in some cases may also help resolve EIDL loans. However, the borrower should first explore the possibility of forgiveness–the requirements are less stringent than when the program was first created.
The SBA or your lender will take legal action: If you are not able to repay any money within a certain amount of time, the SBA will go through your business (and possibly your personal) finances. If they can identify money that can be used to repay the loan, they may start legal proceedings.
Yes, the short answer is that both regular and COVID-19 EIDL loans do need to be repaid. ... However, the SBA has offered a deferred repayment schedule for some terms. Additionally, some EIDL advances are structured as grants that don't need to be paid back.
IMPORTANT UPDATE FOR 2021:
Congress approved an extension of the PPP loan program until June 30, 2021, including “second draw” PPP loans for businesses that received PPP funding in 2020. ... In late December 2020, Congress passed a bill approving a re-funding of the PPP and EIDL programs under the CARES Act.
Unfortunately We Are No Longer Accepting Applications
We know how important it is to keep the backbone of the American economy running. We are doing all we can to advocate for another round of PPP, to get you the funds you need and deserve.
To start your application, you can go to the online application portal. Once there, you will be provided with step-by-step help and the SBA will contact you if additional information is needed. To request an increase in your EIDL COVID loan, you will also need to go to the online application portal.
How Long Does It Take To Receive EIDL Funds? The SBA reports that businesses that apply for a loan below $500K are typically waiting 2-3 weeks. Those that apply for an EIDL loan above $500K and have business real estate as collateral, can expect to wait about 45 days for their funds to be disbursed.