Check the various FAQs answers here about the implementation of the Paycheck Protection Program (PPP) Loans, established by section 1102 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act or the Act). CARES Act is the largest economic relief bill in United States history which will support individuals and businesses affected by the COVID-19 pandemic.

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Answers to Cares Act Paycheck
Protection Program FAQs

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TheCARESActwaspassedinlateMarch --- ThePaycheckProtectionProgram (PPP) provides$349
billionofloanfundstohelptheSmallBusinessesintheCOVID-19pandemicperiod.In round two,
thePPPhasnow beenreplenishedwithanadditional$310billionoffunds.
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A large part of the second roundPPP Loan program, (whichprovides loans to
small businesses struggling amid the coronavirus pandemic) seem to begoing
to small size companies. Theaverage sizeof the loans dropped to $79,000.
Thereare still tons of things that are unclearfor small business owners. Youcan
checkhere,themost importantandfrequentlyaskedquestions about the
federal government’sloanprogram --
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• How mucha business can get through a
PPP loan?
• What are the eligibility to get the Loan
forgiveness?
• How to calculate “average payroll
costs”?
• Are there any payroll costs that are
excluded?
• What aretheloan terms? Are they
different for different types of businesses?
• How canIuse thefunds?
• Can a person get multiple
PPP loans? What if multiple
businesses exist?
• What businesses are eligible?
Questions About the
Paycheck Protection
Program
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4. Howmucha businesscan get througha PPP loan?
Businesses who are qualifying and eligible can
receive a loan for up to 2.5 times of your average
monthly payrollcosts. Thispayroll costs will be
calculated by theaverage from the previous year,to
cover up to eight weeks of payroll. Abusiness can
also apply for an additional 25%of the total
borrowing amount for theeight weeks of payroll.
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5. What are the eligibilityto get the Loan forgiveness?
After receiving thePPP loan amount, you must
spend the loan on approved expenses in order to
get theloan forgiveness If you spend anypart of
yourPPP loan for unapproved expenses, that
amountcannot be forgiven.
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6. Whatare the loan terms?Are they different for different typesof businesses?
ThePPP loan terms that apply to PPP fundingare
same for everyone-
• This Loans will havean interest rate of 1%.
• Loan repaymentis due two yearsfrom the
time that youreceive it.
• Repaymentof the loan canbe deferred for up
to 6 months, but with interest.
• Thereis No collateral required.
• Thereare no personal guarantee
requirements.
• PPP loans are eligible for total forgiveness
with certain conditions.
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7. How can I use the funds?
Funds from a PPP loan can be used to payfor:
• Payroll costs of all employees includingother
benefits
• Interest on mortgage obligations
• Rent for lease agreements that were in place
before February15th,2020
• Utilities services began prior to February15th,
2020
• Interest on existing debt
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8. Howtocalculate “average payroll costs”?
Below are standard payroll calculation:
• Salaries, wages, tips, commissions, bonuses that would
beon a W3
• Paid family leaves or sick leaves
• Anysalary, wages, commissions, or tips — up to
$100,000per employee
• Employee-paid state and local taxes found on a W3
• Employeepaid retirement and group health benefit
contributions
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9. Are there any payrollcoststhat are excluded?
Beloware thepayroll coststhataren’teligiblethroughthe
PPP:
• Payrollreimbursements
• Fringeand ancillary benefits likecommuterbenefits,health
savings accounts
• Workerscompensationfees
• Paymentsmade to independentcontractors
• Sick and family leaveswagesthat are coveredunder the
FFCRA
• Compensationfor an employeewhoseisnot form theUnited
States
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10. Cana person get multiplePPPloans? Whatif multiple businessesexist?
If a USresident have multiple businesses, he/she can get
multiple loans. However, some SBA authorized lenders may
not be able to give multiple loans throughoneperson, even if
they are applying for a different business. Business owner
need to discuss this thing with the lender to besure. If lender
is not providing multiple loans, owner mayneed to apply to
multiple lenders.
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11. Whatbusinessesare eligible?
Anysmall business that have 500or fewer employees may be
eligible. This includes small businesses, non-profits, S
corporations, C corporations, LLCs, faith-based organizations,
tribal business concerns and veteran groups, sole
proprietorships, self-employed individuals, and independent
contractors.
Restaurants, Food service and hospitality businesses are
eligible if they have500 or fewer employees per location.
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More Resources-
https://www.biz2credit.com/disaster-support/cares-act-loans-coronavirus
https://www.slideshare.net/biz2credit/paycheck-protection-program-ppp-loans-and-loan-forgiveness