Sole proprietorships will need to submit a Schedule C from their tax return filed (or to be filed) showing the net profit from the sole proprietorship.Small businesses, sole proprietorships, independent contractors, and self-employed individuals are all eligible. Paycheck Protection Program loans are farther reaching than SBA disaster loans. The loan can be forgiven and essentially turn into a non-taxable grantĪt Bench, we’re helping businesses navigate stimulus funding by connecting them to lenders and assisting with PPP forgiveness applications.No collateral or personal guarantees required.No need to make loan payments until either your forgiveness application is processed, or 10 months after your 24-week covered period ends.The loan covers expenses for 24 weeks starting from the loan disbursement date.Loans made after Jhave a length of five years.

The loan has a maturity rate of two years and an interest rate of 1%.

The following is a high-level overview of the PPP loan program, which we’ll cover in more detail in the rest of this article. It also opened up a second PPP loan for businesses that used up their first PPP loan and have experienced a 25% or greater decrease in revenue. Then on Decema second stimulus package was signed into law topping up the program with an additional $285 billion in funding and updating the eligible expenses. The Paycheck Protection Program Flexibility Act made important changes to the program allowing for more time to spend the funds, and making it easier to get a loan fully forgiven. The program was then expanded by the Paycheck Protection Program and Health Care Enhancement Act in late April, adding an additional $310 billion in funding. You can read the bill in its entirety here. The loans are backed by the Small Business Administration (SBA).

This was originally a $350-billion program intended to provide American small businesses with eight weeks of cash-flow assistance through 100 percent federally guaranteed loans. The Paycheck Protection Program is a loan program that originated from the Coronavirus Aid, Relief, and Economic Security (CARES) Act. ‍ What is the Paycheck Protection Program? If you have already submitted your loan application, however, this does not guarantee you funding. Additionally, a reserve of funds remains for applications previously submitted but not yet reviewed by the SBA. A reserve of funds is still available for community financial institutions that lend to businesses run by women, minorities, and underserved communities. Editor’s note: On Tuesday, May 4th the PPP ran out of general funds and the SBA stopped accepting new PPP loan applications.

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