Are you wondering if there is still PPP money left today? Well, you’re not alone. Many small business owners have been eagerly waiting for the government to open up the second round of funding for the Paycheck Protection Program. This program was created to provide financial assistance to businesses struggling to stay afloat amidst the COVID-19 crisis.
The PPP was initially introduced in March of 2020 as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act. The program was immensely popular, with over 5 million loans approved and more than $525 billion in funds distributed. However, the initial round of funding dried up quickly, leaving many businesses without any relief. But now, many business owners are wondering whether there is still PPP money left today to help them navigate through these challenging times.
As the COVID-19 pandemic continues to impact our economy, the government has allocated another $284 billion for the PPP program. This second round of funding has already launched, and many lenders have started accepting applications. However, the process can be challenging, and there are certain requirements that businesses must meet to become eligible for the funds. So if you’re wondering if there is still PPP money left today, read on to find out how you can secure financial relief for your business.
PPP Loan Extension
With the ongoing pandemic, the government has approved an extension of the Paycheck Protection Program (PPP) loan to help small business owners affected by the crisis. The initial program was approved in March 2020, and the funds that were allocated to help small businesses were quickly used up. On April 23, 2020, the government approved an additional $484 billion stimulus package, which included an extension of the PPP program with an additional $310 billion in funding.
- The deadline to apply for PPP loan has been extended to May 31, 2021.
- Businesses that have already received a PPP loan can apply for a second draw PPP loan.
- Businesses that haven’t received a PPP loan yet can apply for their first one.
The PPP loan extension aims to help small businesses recover from the effects of COVID-19 and keep them open. Another reason for the extension was to help business owners retain their employees as the pandemic continues. With the additional funds made available, business owners can continue to pay their employees’ salaries and other expenses. Moreover, the second draw PPP loan is targeted to business owners who have been severely affected by the pandemic, and who need extra financial assistance to keep their businesses running.
It’s important to note that the PPP program is not a grant, and the loans have to be repaid. The repayment terms for the loans have been updated, and the interest rate for PPP loans is now 1 percent. Also, businesses that received a PPP loan are not eligible for the Employee Retention Tax Credit (ERTC). However, businesses that received a PPP loan can now claim the ERTC starting from January 1, 2021.
| PPP Loan Extension Details | PPP Loan Original Program |
|---|---|
| $310 billion appropriated for the PPP loan extension | $349 billion appropriated for the original program |
| Second draw PPP loans available for businesses under specific conditions | One-time PPP loan per business |
| Loan forgiveness available for qualified businesses | Loan forgiveness available for expenses related to payroll, rent, utilities, and mortgage interest |
In conclusion, small businesses that are eligible for the PPP loan should take advantage of the extension and apply for the assistance. The PPP loan extension has updated terms to provide more assistance to businesses affected by the pandemic. Business owners should also keep track of the updates regarding the loan and make sure that they follow the requirements to qualify for loan forgiveness.
How Much PPP Funding is Left?
As the COVID-19 pandemic continues to ravage the world, the US government enacted the Paycheck Protection Program (PPP) to help small businesses stay afloat. The PPP provides forgivable loans to eligible small businesses to cover payroll, rent, utilities, and other business-related expenses. However, the first round of funding depleted quickly, leading to the passing of the CARES Act 2.0, which added more funding.
- The PPP allocated $806 billion in loans in total.
- The first round of funding in 2020 started with $349 billion.
- The CARES Act 2.0 added another $310 billion.
- As of March 7, 2021, the Small Business Administration (SBA) reported that $134 billion in PPP funds remained available.
- The deadline to apply for PPP loans has been extended to May 31, 2021.
While the remaining PPP funding may seem like a lot, it is important to remember that demand for this program is high, and the government is looking to prioritize underserved small businesses, including those owned by minorities, women, and veterans. Therefore, businesses should act fast and apply before the deadline, as funds are distributed on a first-come, first-served basis.
Another option for small businesses in need of financial assistance is the Economic Injury Disaster Loan (EIDL) program, which is also offered by the SBA. The EIDL program provides low-interest loans to eligible small businesses affected by COVID-19. As of September 2020, the program has approved over $200 billion in loans.
| Date | PPP Funding Available |
|---|---|
| April 16, 2020 | $310 billion added by the CARES Act 2.0 |
| April 3, 2020 | $349 billion from the first round of funding |
In conclusion, while there is still PPP funding available, small businesses should act quickly and apply for the loans before the May 31 deadline. The remaining funds may seem like a lot, but given the high demand, small businesses should take advantage of the relief programs before they run out.
Applying for PPP Loans
The Paycheck Protection Program (PPP) was launched by the federal government in an effort to help small businesses weather the COVID-19 pandemic. While the first round of funding ended on August 8, 2020, the program was replenished with new funds in January 2021. Here is what you need to know about applying for PPP Loans.
- Start by contacting a lender that is participating in the PPP program. This can be a bank, credit union, or other financial institution.
- Gather the necessary documents, which may include tax filings, payroll documentation, and proof of ownership or incorporation.
- Complete the PPP loan application, which can be found on the Small Business Administration (SBA) website.
What if I already received a PPP Loan?
If you already received a PPP loan in a previous round of funding, you may be eligible for a second draw. To qualify for a second draw loan, you must have used all of the funds from your first loan and experienced a revenue reduction of at least 25% in a 2020 quarter compared to the same quarter in 2019. The application process for a second draw loan is similar to that of the first draw.
PPP Loan Forgiveness
PPP loans are eligible for forgiveness if certain criteria are met. To apply for loan forgiveness, you must complete the PPP Loan Forgiveness Application and submit it to your lender. The forgiveness amount will be based on the percentage of funds spent on eligible expenses, such as payroll, rent, and utilities. For loans of $150,000 or less, a simplified forgiveness application is available.
| Loan Amount | Loan Forgiveness Application Required? |
|---|---|
| Less than $50,000 | No |
| $50,000 – $150,000 | Simplified Application |
| More than $150,000 | Full Application |
If you are considering applying for a PPP loan, be sure to move quickly as funds are limited and demand is high. Contact a PPP lender today to get started and keep your business afloat during these uncertain times.
PPP Loan Eligibility Criteria
The Paycheck Protection Program or PPP is a small business loan program that was created as part of the CARES Act in March 2020. The PPP is designed to provide small businesses with the funds they need to keep their workers on the payroll during the COVID-19 pandemic. The PPP has been a lifeline for many small businesses struggling to stay afloat during this trying time. But is there still PPP money left today?
- Small Business Eligibility: To be eligible for a PPP loan, a business must have been operational as of February 15, 2020 and have no more than 500 employees. If a business has more than one location, each location must have no more than 500 employees to be eligible. Some businesses with more than 500 employees may also be eligible if they meet certain industry-specific size standards.
- Non-profit Eligibility: Non-profit organizations, including churches and religious organizations, are also eligible for PPP loans if they meet certain requirements. Non-profit organizations must have been operational as of February 15, 2020 and have no more than 500 employees.
- Sole Proprietor and Independent Contractor Eligibility: Self-employed individuals, sole proprietors, and independent contractors are eligible for PPP loans if they were in operation on February 15, 2020, and if their principal place of residence is in the United States. Applicants may need to provide documentation of their income and expenses to qualify.
In addition to the above eligibility criteria, businesses must also demonstrate a need for the loan due to the economic uncertainty caused by the COVID-19 pandemic. Applicants must certify that the loan request is necessary to support ongoing operations, that the funds will be used to retain workers and maintain payroll, and that the business has not received another PPP loan.
So, is there still PPP money left today? As of October 2021, there is still approximately $7 billion in PPP funds available for small businesses and non-profits. The PPP has been a critical piece of support for small businesses since the onset of the pandemic and the government continues to make resources available to those in need.
| Eligibility Criteria | Description |
|---|---|
| Operational on February 15, 2020 | Business or non-profit must have been operational as of February 15, 2020. |
| No more than 500 employees | Business or non-profit must have no more than 500 employees, or meet certain industry-specific size standards. |
| Need for Loan | Business must demonstrate economic uncertainty due to COVID-19 and certify that the loan is necessary to support ongoing operations and maintain payroll. |
Overall, the PPP loan program has been a vital resource for small businesses and non-profits during a difficult time. While there are still funds available, businesses and non-profits should act quickly to obtain a PPP loan if they meet the eligibility criteria and have a need for the loan.
PPP Loan Forgiveness
If you were able to secure a Paycheck Protection Program (PPP) loan, the next factor to consider is whether you can qualify for loan forgiveness. PPP loan forgiveness is a major aspect of the program and is one of the reasons why it is highly sought-after by small businesses and self-employed individuals alike.
The PPP is designed to help businesses keep their employees on the payroll during the pandemic. To ensure that this goal is achieved, the funds must be used for specific expenses, and it must be fully documented. If you use the funds for the correct purposes and follow all the rules and guidelines, you may be eligible for complete forgiveness of the loan.
What are the Key Factors for PPP Loan Forgiveness?
- The PPP loan funds must be used for payroll costs, utilities, rent, or mortgage interest
- You must maintain the same number of employees on your payroll
- You must maintain the same pay scale for your employees
These factors are important because they affect your eligibility for loan forgiveness. If you do not meet these criteria, you may still be able to receive loan forgiveness, but it may be reduced. The amount of forgiveness will also depend on how you use the funds.
What is the Process for Applying for PPP Loan Forgiveness?
The process for applying for PPP loan forgiveness can vary depending on your situation. Lenders are required to provide their borrowers with a loan forgiveness application. You must fill out all the information accurately and provide all the necessary documentation to support your application. Once you submit the documents, your lender will review them and determine if you are eligible for forgiveness.
It is important to note that the Small Business Administration (SBA) has not yet provided clear guidance on loan forgiveness, so the process may change as new information becomes available. It is recommended that borrowers keep detailed records and stay in contact with their lender to stay informed of any updates or changes.
What Happens if PPP Loan Forgiveness is not Granted?
If your PPP loan forgiveness application is not approved, you will need to repay the loan. The interest rate on the loan is 1%, and the loan term is two years. You can defer payments for six months from the date of disbursement. The loan is also eligible for loan forgiveness even if the full amount is not forgiven.
| Loan Forgiveness Amount | Minimum Usage for Payroll Costs |
|---|---|
| 100% | 60% |
| 75% | Greater than or equal to 60% |
| 50% | Greater than or equal to 50% |
Regardless of the amount of loan forgiveness, it is important to stay in close contact with your lender to ensure that you are complying with all the rules and guidelines for PPP loans.
PPP vs EIDL: What’s the Difference?
If you’re a small business owner looking for financial assistance during this pandemic, you’ve probably heard about the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL). While both programs are offered by the Small Business Administration (SBA), they have some key differences. Here’s what you need to know:
- Loan forgiveness: One of the most significant differences between the PPP and EIDL is loan forgiveness. The PPP loan can be fully forgiven if you use the funds for eligible expenses like payroll, rent, and utilities. The EIDL loan, on the other hand, has no forgiveness options and must be paid back in full.
- Loan amount: The maximum loan amount for the PPP is 2.5 times your average monthly payroll expenses, up to $10 million. The EIDL loan offers up to $2 million in assistance, which can include an emergency advance of up to $10,000.
- Eligibility: The PPP is available to businesses with fewer than 500 employees, as well as to self-employed individuals, independent contractors, and sole proprietors. The EIDL is open to a wider range of businesses, including those with more than 500 employees.
While these are just a few of the differences between the two programs, it’s essential to research and understand which option is best for your business’s unique situation. Keep in mind that the funding for both programs is limited, and the deadline to apply for the PPP has already passed. However, there may still be funds available for EIDL loans.
If you’re not sure which program to apply for or need assistance with the application process, consider speaking with a financial advisor or consulting with the SBA’s resource partners for guidance.
| PPP | EIDL |
|---|---|
| Loan forgiveness | No forgiveness |
| Maximum loan amount | Up to $10 million |
| Eligibility | Available to businesses with fewer than 500 employees, self-employed individuals, independent contractors, and sole proprietors. |
| Open to a wider range of businesses, including those with more than 500 employees. |
It’s important to note that both the PPP and EIDL programs have faced some criticism and controversy, including concerns about access and distribution of funds. However, despite these challenges, many businesses have been able to receive much-needed financial assistance through these programs.
PPP Loan Scams
As with any government program that offers significant financial relief, the PPP Loan program has become a target for scammers and fraudsters. Here are some of the common PPP Loan scams to be aware of:
- Phishing scams: Scammers send out unsolicited emails or text messages that appear to be from the SBA or a bank offering PPP Loans. These messages often contain links to fake websites that ask for personal information or financial details. Be cautious of any unsolicited messages related to PPP Loans and always verify the sender’s identity before clicking any links.
- Fake lenders: Scammers posing as legitimate lenders may offer PPP Loans with generous terms, but they require applicants to pay large upfront fees or provide personal financial information. Look for lenders that have been approved by the SBA and have a good reputation in the industry.
- Double-dipping scams: Some businesses have been caught applying for PPP Loans multiple times, either by using fake business names or by applying through multiple lenders. This is illegal and could result in serious legal consequences.
If you suspect a PPP Loan scam, report it to the SBA’s Office of Inspector General or the Federal Trade Commission.
For more information on PPP Loans and how to avoid scams, visit the SBA’s website and consult with a trusted financial advisor or accountant.
FAQs: Is there still PPP money left today?
1. Is the PPP program still accepting applications?
As of August 8, the PPP program is no longer accepting new applications. However, if you have already applied and received funds, you may still be eligible for loan forgiveness.
2. How much money was originally allocated for the PPP program?
The original allocation for the PPP program was $349 billion. However, an additional $310 billion was added in April 2020 to meet the high demand for loans.
3. Has all the PPP money been claimed?
As of August 8, the Small Business Administration has approved approximately 5.2 million PPP loans, totaling over $525 billion. Although not all of this money has been disbursed yet, it is expected that all funds will be claimed soon.
4. Will there be any more PPP funding in the future?
Currently, there is no additional funding allocated for the PPP program. However, Congress may consider adding more funding in the future if there is enough demand.
5. Can I still apply for other types of small business loans?
Yes, there are other small business loan options available, such as Economic Injury Disaster Loans (EIDL) and 7(a) loans. However, eligibility requirements and funding availability may vary.
6. Where can I go for more information about small business loans?
You can visit the Small Business Administration website for more information about the PPP program and other small business loan options. Additionally, consulting with a financial advisor or lender can provide personalized guidance.
Closing Thoughts: Thanks for reading!
We hope this article helped answer your questions about whether there is still PPP money left today. Although the program is no longer accepting new applications, there are still other small business loan options available. Don’t hesitate to explore these options and seek guidance if needed. Thanks for reading, and be sure to visit us again for more helpful articles in the future!