Quick Answer: Should I Open A New Account For PPP?

How long does PPP approval take?

approximately 10 daysThe PPP process takes approximately 10 days to complete.

Do I need to reapply for the EIDL/EIDL Advance.

If your application confirmation number begins with a “3” you do not need to reapply..

Can I use my PPP loan for anything?

PPP loans can be used for the following purposes: (a) “payroll costs” (defined in Question 17); (b) costs related to the continuation of group health benefits during periods of paid sickness, medical, or family leave, insurance premiums; (c) mortgage interest payments (but not prepayments or principal payments); (d) …

Can you apply for both Eidl and PPP?

Yes, you can apply for both. But you can’t use the funds from both loan programs for the same purpose. For the most updated and complete information, read the FAQs on the EIDL and FAQs on the PPP.

What is the deadline for PPP loan forgiveness?

The SBA has not set a deadline to apply for forgiveness, but you have 10 months after the end of your covered period before you’ll be required to start making monthly payments.

Do you have to have a business account for PPP?

The CARES Act that set up the PPP loan program says you must be in business before February 15, 2020. It doesn’t say that providers must have a separate business account before that date. … Banks and other lenders can set their own rules about accepting applications for the PPP program.

What happens after PPP approval?

You only have eight weeks to spend PPP funds that will be forgiven, and 75 percent of funds qualified for forgiveness need to be spent on qualifying payroll costs. … Lenders are currently receiving guidance to distribute funds to businesses within ten days of receiving SBA approval.

When can 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.

How do I get PPP money?

You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program.

When should I apply for PPP forgiveness?

You must apply for forgiveness within 10 months after the end of the ‘Covered Period. ‘ which is the 24-week period that starts when you received your PPP loan. The lender (i.e. your bank) has 2 months to process your loan forgiveness application then SBA has three additional months to approve your forgiveness.

Should I open a separate account for PPP?

For many PPP borrowers, it will be key to have two items in place: a strong tax professional and a separate bank account to hold the PPP funds. It has become clear during the PPP loan process that having a strong tax professional helping with the application makes a difference.

Can PPP be deposited into a personal account?

DON’T: Mix loan funds with personal assets Again, to keep things easy to track, avoid depositing your PPP loan funds into a personal account and avoid the temptation of using the funds to pay for personal expenses.

What are the requirements for PPP loan forgiveness?

Paycheck Protection Program (PPP) borrowers may be eligible for loan forgiveness if the funds were used for eligible payroll costs, payments on business mortgage interest payments, rent, or utilities during either the 8- or 24-week period after disbursement.