## Who Qualifies for Small Business Loan Coronavirus?
The Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law on March 27, 2020, established the Paycheck Protection Program (PPP) to provide loans to small businesses to help them keep their employees on the payroll during the COVID-19 pandemic. The PPP is a $349 billion loan program that is administered by the Small Business Administration (SBA) and is available to small businesses, nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietors, and independent contractors.
To be eligible for a PPP loan, a business must meet the following criteria:
* **Be a small business.** A small business is defined as a business with fewer than 500 employees or that meets the SBA’s size standards for its industry.
* **Be a for-profit business.** The PPP is not available to nonprofit organizations.
* **Be located in the United States.** The PPP is only available to businesses that are located in the United States or its territories.
* **Have been in operation before February 15, 2020.** The PPP is not available to businesses that were not in operation before February 15, 2020.
* **Have been impacted by the COVID-19 pandemic.** The PPP is only available to businesses that have been impacted by the COVID-19 pandemic.
* **Have a need for the loan.** The PPP is not intended to be a windfall for businesses. Businesses should only apply for a PPP loan if they truly need the money to keep their employees on the payroll.
The maximum amount of a PPP loan is $10 million. The loan amount is calculated based on the business’s average monthly payroll costs over the past 12 months, plus an additional 25% for other eligible expenses, such as rent, utilities, and mortgage interest.
The PPP loans are forgivable if the business uses the money to keep its employees on the payroll. The loan forgiveness amount is equal to the amount of the loan that is used for payroll costs, rent, utilities, and mortgage interest during the eight-week period following the loan origination date.
The PPP is a valuable resource for small businesses that have been impacted by the COVID-19 pandemic. If you are a small business owner, you should consider applying for a PPP loan if you need the money to keep your employees on the payroll.
## How to Apply for a PPP Loan
The PPP is administered by the SBA, and loans are available through SBA-approved lenders. To apply for a PPP loan, you will need to complete an application form and submit it to an SBA-approved lender. The application form is available on the SBA’s website.
The application form will ask for information about your business, including your business name, address, and EIN. You will also need to provide information about your average monthly payroll costs and other eligible expenses.
Once you have submitted your application form, the lender will review your application and make a decision on whether to approve your loan. If your loan is approved, the lender will send you a loan agreement. You will need to sign the loan agreement and return it to the lender.
Once the loan agreement is signed, the lender will disburse the loan funds to your business. You will then have eight weeks to use the funds to keep your employees on the payroll and to cover other eligible expenses.
## Loan Forgiveness
The PPP loans are forgivable if the business uses the money to keep its employees on the payroll. The loan forgiveness amount is equal to the amount of the loan that is used for payroll costs, rent, utilities, and mortgage interest during the eight-week period following the loan origination date.
To apply for loan forgiveness, you will need to submit a forgiveness application to your lender. The forgiveness application will ask for information about how you used the loan funds.
Once you have submitted your forgiveness application, the lender will review your application and make a decision on whether to approve your request. If your forgiveness request is approved, the lender will forgive the amount of the loan that was used for eligible expenses.
## Conclusion
The PPP is a valuable resource for small businesses that have been impacted by the COVID-19 pandemic. If you are a small business owner, you should consider applying for a PPP loan if you need the money to keep your employees on the payroll.