SpaceLab’s COO Bobby Burton answers a few FAQs on the SBA-backed Paycheck Protection Program (PPP). The deadline to apply has been extended to May 21, 2021.
The questions are being answered based on our company’s experience. Consult with your accountant, banker or the SBA directly to get answers for your individual business.
Who is eligible for PPP?
Any business with 500 or less employees is eligible to file. The Biden administration just opened the program to independent contractors and sole proprietors.
How do I apply?
The primary means to apply is through your business bank. If you don’t have a business bank, the best place to apply is community banks like Level One or First Independence.
How much money can I receive?
The formula that is used is 2.5 times your monthly payroll. If your payroll is $2000, then you will be eligible for $5000 through PPP.
Is PPP a loan program?
It is, but the loan can be forgiven and become a grant. There is a forgiveness process that you must complete. The rules change, so it will depend on the rules when you apply for forgiveness.