What is Paycheck Protection Program Loan?

Paycheck protection program loan

The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.SBA will forgive loans if all employees are stored on the QuickBooks payroll for eight weeks and the cash is used for payroll, rent, mortgage interest, or utilities.

You can apply via any existing SBA 7(a) lender or thru any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be to be had to make those loans once they are accepted and enrolled in the program. You ought to consult with your local lender as to whether it’s far participating inside the program.

Who Can Apply:

The following entities affected by Coronavirus (COVID-19) may be eligible:

  • Any small business concern that meets SBA’s size standards (either the industry based sized standard or the alternative size standard).
  • Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans organization, or Tribal business concern (sec. 31(b)(2)(C) of the Small Business Act) with the greater of:
  • 500 employees, or
  • That meets the SBA industry size standard if more than 500
  • Any business with a NAICS Code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location
  • Sole proprietors, independent contractors, and self-employed persons.

Loan Details and Forgiveness:

The loan may be fully forgiven if the finances are used for payroll costs, hobby on mortgages, rent, and utilities (because of likely high subscription, as a minimum 75% of the forgiven amount must have been used for payroll). Loan payments can also be deferred for 6 months. No collateral or personal guarantees are required. Neither the government nor creditors will fee small groups any fees.

Forgiveness is primarily based on the organization keeping or quick rehiring personnel and keeping profits levels. Forgiveness could be decreased if full-time headcount declines, or if salaries and wages decrease.

This loan has a maturity of 2 years and an interest rate of 1%.

Our Support:

Above blog will help you understanding the paycheck protection program loan. If you still have any doubt regarding paycheck protection program, then you connect with our QuickBooks technical support team at Call us: 1800-910-4754 for the instant support.

Related article:

QuickBooks PPP Loan Forgiveness on Payments to Owners

How to Prepare for QuickBooks Paycheck Protection Program?

How to Apply for the Payroll Protection Program in QuickBooks?

1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)

Leave a Reply

Related Posts

QuickBooks Error 9000

How to Fix QuickBooks Error 9000?

QuickBooks is time saver software program for lots small corporations across the world. The maximum captivating characteristic of ...

Learn More
QuickBooks Error code 6000 95

How to Solve QuickBooks Error 6000, 95?

When the use of QuickBooks, customers ought to have skilled or might also additionally go through problems that come to […]...

Learn More
QuickBooks Error code 6144

How to Solve QuickBooks Error 6144 & Error Code 6144-82?

QuickBooks Error 6144 82 is one of the many errors which QuickBooks has arise with. It sticks out due to […]...

Learn More
QuickBooks Error 6000 82

How to Fix QuickBooks Error 6000 82?

QuickBooks is an accounting software program that gives QuickBooks online software program answers to its customers. QuickBooks is...

Learn More
QuickBooks error 6000 816

How to Fix QuickBooks Error 6000 816?

There might be a whole lot of questions strolling inside the users’ thoughts about the QuickBooks Error 6000 816. This […...

Learn More
QuickBooks Error code 7149

How to Fix QuickBooks Error 7149?

QuickBooks Error 7149 is a runtime error which happens either because of corrupt program files or a few registry errors. […...

Learn More

Disclaimer: The accomplishment of accounting services isn’t restricted to the tools that we use. We also rely on other and external tools and portals to provide you with world-class accounting, bookkeeping, CRM and other similar services.