The SBA-backed Paycheck Protection Program assists businesses in keeping their workers employed amid the COVID-19 issue.
PPP is a loan aimed at encouraging small firms to keep their employees on the payroll.
First Draw PPP loans can help payroll costs, including benefits, as well as mortgage interest, rent, and COVID-19-related worker protection costs.
Loans issued before June 5, 2020, have a two-year term; loans issued after June 5, 2020, have a five-year maturity.
PPP is popular for its 1% interest rate, and it requires no collateral or personal guarantees.
Suppose a borrower does not request debt forgiveness; in that case, payments will be deferred for 10 months following the conclusion of the loan forgiveness term.
Any small business that fulfils the SBA's size requirements is eligible for a loan.
If borrowers previously returned some or all of their First Draw PPP loan funds, they can reapply.
According to the SBA, forgiveness has been requested for 92% of all PPP loans.
PPP loans have been forgiven in full or in part in 88% of cases, as per April 2022 press release.