The Paycheck Protection Program (PPP) is a loan program created by the U.S. government to help small businesses keep their employees on payroll during the COVID-19 pandemic.
The program provides loans that can be forgiven if the borrower uses the money to pay for payroll, rent, utilities, and other eligible expenses.
To be eligible for a PPP loan, a business must meet certain requirements. These requirements include:
1. The business must have fewer than 500 employees.
2. The business must have been in operation on February 15, 2020.
3. The business must have suffered a financial loss due to the COVID-19 pandemic.
Who is Not Eligible for a PPP Loan
In addition to the requirements for eligibility, there are also a number of businesses that are not eligible for a PPP loan. These businesses include:
- Businesses that have defaulted on federal loans.
- Businesses that have a prior loss to the federal government.
- Businesses that are in delinquent status for nontax debt to the federal government.
- Businesses located in a foreign country or owned by undocumented aliens.
- Businesses that utilize a pyramid sale distribution plan.
- Private clubs and businesses that limit the number of memberships for reasons other than capacity.
- Businesses that have discriminatory hiring practices.
- Businesses that are primarily engaged in lending or investing.
- Businesses that are already receiving other federal assistance, such as the Economic Injury Disaster Loan (EIDL).
- Businesses that have permanently closed.
How to Find Out if You Are Eligible for a PPP Loan
To find out if your business is eligible for a PPP loan, you can use the SBA\’s eligibility calculator. The calculator is available on the SBA website.
To use the calculator, you will need to provide some information about your business, such as your business type, number of employees, and revenue. The calculator will then tell you if your business is eligible for a PPP loan.
Where to Apply for a PPP Loan
If you are eligible for a PPP loan, you can apply for a loan through a participating lender. Participating lenders are banks, credit unions, and other financial institutions that have been approved by the SBA to offer PPP loans.
You can find a list of participating lenders on the SBA website.
FAQs about Who is Not Eligible for a PPP Loan
What if I am not sure if I am eligible for a PPP loan?
If you are not sure if you are eligible for a PPP loan, you should consult with an attorney. You can also find more information about the PPP program on the U.S. Small Business Administration website.
What if I have already received a PPP loan?
If you have already received a PPP loan, you should continue to use the money for the eligible expenses as described in the loan agreement. You should also keep good records of how you use the money.
What if I have questions about the PPP program?
If you have questions about the PPP program, you can contact the U.S. Small Business Administration. You can also find more information on the SBA website.
Wrapping Up
If you are not sure if you are eligible for a PPP loan, you should consult with an attorney. You can also find more information about the PPP program on the U.S. Small Business Administration website.
I hope this article has been helpful. If you have any further questions, please do not hesitate to ask.
Disclaimer:
This article is for informational purposes only and does not constitute legal advice. Please consult with an attorney to determine your eligibility for a PPP loan.