PPP Loan Review Process 2022 : Paycheck Protection Program

PPP Loan Review Process Paycheck Protection Program
PPP Loan Review Process Paycheck Protection Program

PPP Loan : What is PPP loan, how to take home PPP loan who is eligible for PPP loan, etc. What’s going on PPP is a loan designed to provide a direct incentive for small businesses to keep you on parole. Know that you are a PPP. How to get a loan and what documents are required for this.

The PPP Loan is a business loan program established in 2020 to help some businesses, self-employed workers through the Coronavirus Assistance, Relief and Economic Security Act (CARES Act). The PPP was started by the federal government of the United States.

What is the Paycheck Protection Program (PPP Loan)?

PPP Loan : The Paycheck Protection Program is a loan program derived from the Coronavirus Assistance, Relief and Financial Protection (CARES) Act. It was originally a $ 350 billion program aimed at providing eight weeks of cash flow assistance to American small businesses through 100 percent federally guaranteed loans. Loans are supported by the Small Business Administration (SBA). You can read the full bill here.

The program was further expanded in late April by the Paycheck Protection Program and the Health Care Enhancement Act, with an additional $ 310 billion in funding. The Paycheck Protection Program Flexibility Act made significant changes to the program, giving more time to spend funds, and made it easier to completely forgive debts.

PPP Loan Review Process  Paycheck Protection Program
PPP : Paycheck Protection Program

Then on December 27, 2020, another incentive package was signed into law, topping the program with additional $ 285 billion in funding and updating of eligible expenses. It also opened a second PPP loan for businesses that used their first PPP loan and experienced a 25% or more reduction in revenue.

PPP Loan Features & Benifits?

Below is a high-level overview of the PPP loan program, which we will cover in more detail in the rest of this article.

  • All small businesses are eligible for PPP Loan
  • The loan has a two-year maturity rate and an interest rate of 1%.
  • The loan tenure is five years after June 5, 2020.
  • Loan covers expenses for 24 weeks starting from the date of loan disbursement
  • There is no need to repay the loan until your forgiveness application is processed, or 10 months after your 24-week cover period has ended.
  • No innate or personal guarantee required
  • No Fees
  • The loan can be forgiven and converted into a non-taxable grant.
  • At Bench, we are helping businesses navigate stimulus funding by connecting with lenders and assisting with PPP waiver applications.

PPP Loan Required Eligibility Cretria?

  • Paycheck Protection Program loans reach far beyond SBA disaster loans. Small businesses, sole proprietorships, independent contractors and self-employed individuals are all eligible.
  • Individual owners will need to submit a Schedule C from their tax return filing (or for filing) showing the net profit from the sole proprietorship.
  • Independent contractors must submit Form 1099-MISC (now 1099-NEC in 2020) in addition to their Schedule C.
  • Self-employed individuals will need to file reported wage taxes to the Internal Revenue Service.
  • For second draw PPP loans in 2021, a key qualification was introduced. Businesses applying for their second PPP loan must show a reduction in revenue of 25% or more. This will be shown by comparing the earnings in a quarter in 2020 with the corresponding quarter in 2019.

 For example PPP Loan

let’s say a business recorded $20,000 in sales revenue in the second quarter (Q2) of 2019. They will be eligible for PPP funding if they have recorded sales revenue of $15,000 or less in Q2 2020.

What can a PPP loan be used for?

  • At least 60 percent of PPP loans must be used to fund payroll and employee benefit costs.
  • The remaining 40 percent can be spent on:
  • mortgage interest payment
  • rent and lease payments
  • Facility
  • Operating expenses such as software and audit requirements (such as bench)
  • The cost of property damage due to public disturbance is not covered by insurance
  • supplier cost such as cost of goods sold
  • labor protection cost for covid adaptation
  • If you follow these guidelines, you will be able to get 100% loan forgiveness (effectively converting it into a tax-free grant).


As part of your application, you will be asked to verify that you will spend the funds appropriately. If you don’t spend the money properly, you could be charged with fraud.

Will there be an audit of PPP loans?

   Your PPPloans can be audited to make sure the funds were used for their intended purpose. All loans over $ 2 million will be fully audited, while small loans will be spot-checked.

Will the PPP have to repay the loan in self-employment?

   Pay off your debt at 1% over the next two to five years: If you took out a loan before the PPP Flexibility Act was passed on June 5, 2020, you have two years to pay off your debt arrears. Are If you have taken out a loan after that date, you will have five years. PPPloans earn 1% interest over that period

Who is eligible for PPP loan?

Any small business with 500 or fewer employees may be eligible. This includes small businesses, S corporations, C corporations, LLCs, private nonprofits, trust-based organizations, tribal groups, and experience groups.


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