For the payroll portion of your PPP loan, you will need to provide documents from your payroll provider and proof of paying employment taxes with IRS and state forms. Eligible payroll costs include salaries and wages, health benefits, and paid leave (i.e. vacation, parental, family, medical, or sick leave).
What is mandatory exclusion for PPP loan?
Any amounts that an eligible borrower has paid to an independent contractor or sole proprietor should be excluded from the eligible business’s payroll costs, except for fishing boat owners as permitted by PPP interim final rules.
How long do you go to jail for PPP loans?
30 years
In order to convict a person, prosecutors must prove beyond a reasonable doubt that the defendant committed each element of the offense. Obtains money by false or fraudulent pretenses, representations, or promises. Penalty is up to 30 years in prison.
What are the FAQs for the PPP program?
The U.S. Treasury Department today posted an updated set of “frequently asked questions” (FAQs) concerning the Paycheck Protection Program (PPP) as administered by the Small Business Administration (SBA).
What to know before applying for a PPP loan?
Specifically, before submitting a PPP application, all borrowers should review carefully the required certification that “ [c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.”
What’s the maximum amount you can get a PPP loan for?
The SBA has also created an explainer for first-time PPP loans that outlines calculations for different types of businesses. For second-draw PPP loans, the maximum loan amount is calculated as 2.5 times average monthly 2019 or 2020 payroll costs for a maximum of $2 million.
When does the PPP loan cover period end?
the PPP Loan Disbursement Date (referred to as the Alternative Payroll Covered Period). However, if a borrower pays twice a month or less frequently, it will need to calculate payroll costs for partial pay periods. The Covered Period or Alternative Covered Period for any borrower will end no later than December 31, 2020.
