Question: Can I Apply For PPP If I Have No Employees?

Do PPP loans have to be repaid?

Yes.

PPP loans (the full principal amount and any accrued interest) may be forgiven, meaning they do not have to be repaid.

If you do not apply for forgiveness, you will have to repay the loan.

Businesses have up to 24 weeks from the date you received the loan to spend the funds and be eligible for loan forgiveness..

How can a sole proprietor get PPP forgiven?

For independent contractors, sole proprietors, and other self-employed workers, you can have eight weeks of your loan proceeds automatically forgiven as salary replacement. This should amount to 75% of your PPP loan, assuming you took the maximum amount available to you when you applied.

What happens if my PPP loan is not forgiven?

What if my loan isn’t forgiven in full? You will have to repay any amount of the PPP loan that is not forgiven at a 1% interest over a 5 year term. Loan payments will be deferred for six months but will start incurring interest immediately. PPP loans have no fees and no prepayment penalties.

Can independent contractors apply for PPP?

You are eligible to apply for a PPP loan as an independent contractor or self-employed individual who has been or will be harmed by the pandemic if all of the following are true: … You filed or will file a Form 1040 Schedule C for 2019 showing self-employment income.

Are PPP funds still available?

Notice: Paycheck Protection Program closed August 8, 2020 Current law dictates that the Paycheck Protection Program (PPP) close at the end of August 8, 2020. As such, SBA is no longer accepting PPP applications from participating lenders.

How do sole proprietors get PPP loan forgiven?

Using the OCR, sole proprietors can claim forgiveness based upon 2019 net profit. … It is not necessary to document any payroll. Borrowers who received loans prior to June 5, 2020, may elect to use the 8-week forgiveness covered period and can claim eight weeks’ worth of OCR.

What is the deadline for PPP loan forgiveness?

October 31, 2020Question: The PPP loan forgiveness application forms (3508, 3508EZ, and 3508S) display an expiration date of 10/31/2020 in the upper-right corner. Is October 31, 2020 the deadline for borrowers to apply for forgiveness? Answer: No.

What are the new rules for PPP loan forgiveness?

In general, PPP loans are forgivable if your business used at least 60% of the loan for eligible payroll costs over a span of 24 weeks. Non-payroll costs, including mortgage interest, business rent and utilities are also eligible for forgiveness, but the new rules tweak certain eligibility requirements.

Can I get a PPP loan with no employees?

What’s the biggest loan I can get? The PPP limits compensation to an annualized salary of $100,000. For sole proprietors or independent contractors with no employees, the maximum possible PPP loan is therefore $20,833, and the entire amount is automatically eligible for forgiveness as owner compensation replacement.

What documents are needed for PPP forgiveness?

To prove payroll costs you’ll need to provide: Payroll service reports documenting wages paid to employee. Federal payroll tax filings (IRS Form 941) Income, payroll, and unemployment insurance filings from your state. Receipts for employer contributions to group benefit plans.

How do I apply for PPP if self employed?

Who is eligible to apply for a self-employed PPP loan?Must be in operation before February 15, 2020.Must have income from self-employment, sole proprietorship, or as an independent contractor.Must live in the United States.Must file a Form 1040, Schedule C for 2019.Must have net profit for 2019.

Who is eligible for the PPP?

Who Qualifies for a PPP Loan? Any small business with 500 or fewer employees may be eligible. This includes small businesses, S corporations, C corporations, LLCs, private nonprofits, faith-based organizations, tribal groups and veteran groups.

Can an LLC with no employees apply for PPP?

Only sole proprietors, sole members of LLCs, and independent contractors may at this time apply as self-employed individuals for PPP Loans. … Note: SBA stated that it will issue additional guidance for those self-employed individuals in operation on February 15, 2020, but not in operation in 2019, to apply for PPP Loans.

Can sole proprietors apply for PPP?

Eligible self-employed individuals, independent contractors, or sole proprietors can apply for a PPP loan and use the proceeds in the same way as other qualifying business entities can. The maximum amount such individuals can borrow under the program will also be determined in the same way as it is for other employers.

When should I apply for PPP forgiveness?

Borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from loan origination.

Can self employed get PPP and unemployment?

Self-employed folks and independent contractors can now qualify for unemployment and those unemployment benefits have been given a boost with an extra $600 in benefit payments for 13 weeks. … You can get money from the PPP or unemployment, but not both.

Who is not eligible for the PPP program?

Passive businesses owned by developers and landlords that do not actively use or occupy the assets acquired or improved with the loan proceeds (except as Eligible Passive Companies under 13 CFR § 120.111) are not eligible.