Updated: Nov 13, 2020
What is PPA?
PPA is financial assistance through a federal guarantee of 100% for small business interruption loans made by 7(a) lenders of up to $10.
This loan can be applied towards:
· Interest on mortgage obligations, incurred before February 15, 2020
· Rent, under lease agreements in force before February 15, 2020
· Utilities under service that began prior to February 15, 2020
· Payroll costs, including benefits
Check out article by Professional Photographers of America.
1. In clarification released by the Department of Treasury
2. What can be Included in Payroll Costs?
3. Is there a Cap on the Loan?
4. How much of the Loan can be Forgiven?
5. What is the interest rate?
6. What are the Certification Requirements?
And other important questions
“Self-employed people who borrowed from the Paycheck Protection Program may have a tough time getting the full balance forgiven”-by Darla Marcado on CNBC’s article.
Read the full article;
The loan is supposed to be forgivable if at least 75% of the proceeds are used to cover payroll, according to the Small Business Administration. No more than 25% can be used for other items.
Check out the PPA loan forgiveness application form posted by the SBA on 16th May 2020.
(For borrowers to certify that funds were used for eligible payroll and nonpayroll costs)
Did you know that if you applied for and received a Payroll Protection Program (PPP) loan, there is another application you’ll have to submit to meet requirements for having the loan forgiven?
You need to read the article on Forbes by Julie Jason, JD, LLM