Great news for small business owners still in need of funding to rebuild their business. The Paycheck Protection Program (PPP) has been extended through May 31, 2021. Originally slated to end on March 31st, 2021, business owners now have extra time to apply.
Here’s information to know about the program, how it can help your business, and the best way to apply.
What is the PPP?
The Paycheck Protection Program (PPP) is a loan designed to provide a direct incentive for small businesses to keep their workers on payroll. Borrowers may be eligible for PPP loan forgiveness.
How do I apply for a PPP loan?
First, make sure you meet the new application deadline of May 31, 2021. Previously slated to end March 31, 2021, business owners now have additional time to apply. However, regardless of the date, the program will end when funds are depleted.
To apply for a PPP loan, you’ll need to submit your business and personal tax returns, business bank statements, and payroll history report. If you use a payroll reporting service like ADP or Gusto, you can download their PPP reports. Also, you can easily and securely link your payroll provider account directly to your PPP Loan application.
For self-employed, independent contractors, gig workers or sole proprietors, you’ll need to provide Form 1040 Schedule C for either 2019 or 2020, bank account information, and a driver’s license or passport number. If this is your first PPP loan, you can provide a bank statement or invoice/receipt showing business operations as of February 15, 2020.
If this is your second time applying, the SmartBiz Small Business Blog has an article with more information: How to Apply for the Second Round of PPP.
Are PPP loans forgivable?
Yes! For more information on PPP loan forgiveness and what you will need when you apply, please go to Paycheck Protection Program Forgiveness Application Guidelines.
Your lender or funding bank will send you an email notification when the lender’s Forgiveness application is available. Depending on the forgiveness period you select, your forgiveness application may not be due until approximately 5 months after your loan is funded.
Additional resources
The SmartBiz Small Business Blog was created to share important information that impacts small businesses across America. In addition to extensive content on small business funding, SmartBiz blog posts cover marketing, credit scores, sales strategies, hiring, insurance, employee management, and more.
Here are recent articles with additional information about the Paycheck Protection Program:
