Do I have to pay back PPP loan?

If you do not use PPP for these purposes, your PPP loan will not be forgiven and you will be required to pay back the loan. Businesses have up to 24 weeks from the date you received the loan to spend the funds and be eligible for loan forgiveness.

Are employer payroll taxes included in PPP forgiveness?

A: No, borrowers are eligible for forgiveness for payroll costs paid and payroll costs incurred, but not yet paid, during the applicable Covered Period. Payroll costs incurred but not paid within the Covered Period must be paid by the next regular payroll date to be counted for forgiveness purposes.

How can I get my PPP loan forgiven?

To apply for PPP loan forgiveness, use the SBA’s Loan Forgiveness Application form, Form 3508, or your lender’s equivalent form. You might be able to use Form 3508EZ or Form 3508S if you meet the eligibility guidelines. After completing the form and attaching any necessary documents, submit it to your lender.

Can an independent contractor get a PPP loan and unemployment 2021?

Answer: Yes. Sole proprietors, independent contractors, and self-employed persons are eligible to borrower a PPP loan.

How much can I pay myself with PPP loan?

$15,384

Can 100% of PPP loan be used for payroll?

You won’t be able to qualify for 100% forgiveness unless you rehire staff you laid off after February 15, 2020. Don’t cut jobs or salaries. You’ll have to pay back a larger portion of the loan if you cut employees or their wages.

Can I use PPP loan to pay off debt?

No, the PPP cannot be used to pay outstanding business, corporate, or property taxes. However, PPP funds can be used to cover state and local payroll taxes that you (the employer) have to pay over the loan period.

What is the maximum PPP loan amount?

When applying for Paycheck Protection Program (PPP) loans, businesses are limited to the lesser of two amounts: 1) A defined maximum loan size ($10 million for first-draw loans, $2 million for second-draw) or 2) a calculated amount based on payroll costs.

Can I increase my PPP loan amount?

If you didn’t accept the full amount of your PPP loan, you may request an increase up to the amount previously approved. 27, 2020, may request an increase if a higher maximum loan would be calculated under the new rules (average total monthly payments for payroll for any 12-week period beginning Feb.

How much second PPP loan can I get?

Calculating the size of your second-draw PPP loan For most businesses, the maximum loan amount businesses can apply for is 2.5 times the average monthly 2019 or 2020 payroll costs, up to $2 million.

Can I get first and second-draw PPP?

You can’t apply for a first-draw PPP loan AND a second-draw PPP loan at the same time, but if you act quickly, you can get your first draw funding and spend it in a legal fashion (i.e., on payroll expenses—which in the case of independent contractors, eligible self-employed individuals, or sole proprietors means paying …

Can you get 2 PPP loans 2021?

A small business would have to be eligible and qualify for both first-draw and second-draw PPP loans, with second PPP loan requirements being more restrictive. The business would need to spend at least 60% of the funds on payroll expenses, but would not need to have the loan forgiven to apply for a new one.