SBDC Questions and Answers


What If I Never Received a PPP Loan?

For new PPP applicants, the loan process will largely remain the same (check out the U.S Chamber’s original PPP Guide) with a few major changes:

  • The PPP program is open through March 31, 2021 or until the new funding is exhausted.
  • If you are a 501(c)(6), a local news media organization, or a housing cooperative you may be newly eligible for a loan.
  • You may qualify even if you took advantage of the Employee Retention Tax Credit.
  • If you are a publicly-traded company, you are now prohibited from receiving a loan.
  • Group insurance payment can be included in your payroll costs when determining your maximum loan amount (see Step 3 in our original Guide).
  • If you are a seasonal employer, you have greater flexibility in picking the 12-week period between February 15, 2019, and February 15, 2020, used to determine your payroll costs and thus your maximum loan amount.

New borrowers have until the end of the covered period of their loan (up to 24 weeks after origination) to restore a reduction in their number of employees or reduced wages in order to avoid having their loan forgiveness reduced.  Note: The safe harbors for when an employer cannot find qualified employees or where complying with COVID related safety measures prevents a return to February 2020 levels of business activity and staffing remain in effect. Learn more in the Guide for PPP Loan Forgiveness

Set-Asides: $35 billion is set aside for first-time borrowers and $15 billion is set aside for employers with 10 or fewer employees or for loans less than $250,000 for entities located in a low-income neighborhood.

Remember: The other changes regarding eligible uses of PPP funds and loan forgiveness discussed above will also apply to your new loan.