The amount you receive from the PPP won’t be impacted by working and earning income—you’ll still be able to receive 2.5 times your monthly payroll cost. But if you are receiving unemployment benefits and are still partially working, your benefits may be reduced.
Can I pay my employees less with PPP?
If not all employees are kept on payroll, the possible forgivable amount will be reduced. Forgiveness will also be reduced if you lower by more than 25% the salary of any employee (who earned less than $100,000 in 2019).
Can I pay my employees more with PPP?
Can I use all the PPP funds to pay myself? No, and this applies to all small businesses. Keeping your employees laid off and increasing your own pay goes against the purpose of the program. Your forgivable amount would be reduced because your headcount was lower than before.
How does PPP define employee?
First, let’s define what an “employee” means under the Paycheck Protection Program. An employee is any member of your company that receives compensation through your payroll, with the exception of independent contractors (more on this shortly).
Can I apply for PPP while on unemployment?
Can I apply for a PPP loan if I am receiving unemployment assistance? Yes, but proceed with caution. There is no restriction on receiving both benefits, but as a general rule you should not use your PPP loan to cover your own compensation while at the same time receiving unemployment benefits.
How fast do you get PPP money?
Once a PPP loan application is approved by the SBA, by law you are supposed to receive the disbursement from your lender within 10 calendar days.
How many times can I apply for PPP?
Applications are open now! You can only apply if you will have used up your first PPP loan by the time your second PPP loan funds are disbursed.
Are there any questions about the PPP for small businesses?
As such, many small businesses struggle to navigate some aspects of the PPP, such as eligibility and forgiveness. In order to bring more clarity, we’ve compiled some of the most popular questions that have been asked and answered during our Small Business Update series and National Small Business Town Halls from the U.S. Chamber of Commerce.
Can you get a PPP loan if you are an employee?
If you are the sole owners and staff of your business, you can still receive PPP loans and use them towards your payroll costs. You are an employee of your business, so you can use your loans to pay yourselves. Start your free PPP application. What if I don’t have any employees? Can I still qualify for a PPP loan?
What are the requirements for a second draw PPP loan?
The second-draw loans are more targeted than first-time PPP loans, and to qualify, businesses must 1) have previously received a PPP loan and used the full amount only for authorized uses; 2) have fewer than 300 employees; and 3) have had a 25% reduction in gross receipts during at least one quarter of 2020 versus the same quarter of 2019.
How are FTEs calculated for PPP loan forgiveness?
4. How are FTEs calculated? The PPP Loan Forgiveness Application has two ways to calculate FTEs. You can either calculate them per employee with actual weekly hours divided by 40 hours; thus a 30 hour person would be 0.75 FTE.
