Considering applying for the Paycheck Protection Program (PPP) for the first time and have questions? Well, we are here to help! Here is a list of common questions that first-time applicants may have:
1. How can I get started applying for a PPP loan?
There are several ways to apply for a PPP loan. You can apply via a lender, credit union, or a bank.
2. Is it required by the PPP lender to be able to replicate the payroll calculations of the borrower?
No, however, the borrower’s application must go through a useful faith review.
3. Is it necessary for the business to qualify as a small business concern to take part in PPP?
No, it is not required.
4. Is it required by the PPP lender to confirm whether the borrower has any affiliates whose employees are included in the borrower’s count of employees?
No, it is not required.
5. Is it required by the borrowers to apply for small business administration (SBA) standard affiliation rules under existing U.S. SBA regulations?
Yes, it is required.
6. Do PPP loans include paid sick leave?
Yes, they do.
7. Is it allowed to accommodate a third-party payer such as a professional employer organization (PEO) to proceed with payroll and report the payroll taxes?
It is allowed but with proper documentation.
8. Are signatures of a single individual acceptable who is authorized to sign on behalf of the PPP loan’s borrower?
Yes, they are acceptable.
9. Can the lenders collect the required information and documents through their online portals?
Yes, they may.
10. Do the payroll costs used to calculate the maximum loan amount involve federal taxes?
Payrolls are calculated on a gross basis; these are not affected by taxes.
11. Do lenders use a promissory note assigned by SBA, or they have to use their own?
No, they have to use their own.
12. Are scanned copies of documents or E-consents issued by the E-sign Act acceptable?
Yes, they are acceptable.
13. Can the lender trade a PPP loan into the secondary market?
Yes, they can.
14. Is a separate SBA authorization document required to issue PPP loans?
No, it is not required.
15. Are convicted persons eligible for the PPP?
Initially, an applicant would have their records reviewed for any felonies committed in the past five years, but, after June 12, 2020, only the previous year will be reviewed.
However, a business owner will be deemed ineligible if they have any felony convictions involving embezzlement, bribery, fraud, or a false statement in a loan application within the past five years.
Interested in applying for a PPP loan? Let Paybby help you process your PPP loan application in 15 minutes or less! Click here to begin your application.
