Frequently Asked Questions:
Q: What is the Paycheck Protection Program?
A: The Paycheck Protection Program was originally created under the Coronavirus Aid, Relief, and Economic Security Act (or CARES Act). It is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
Q: What is in the new COVID relief package?
A: Congress recently passed The Coronavirus Response and Relief Supplemental Appropriations Act of 2021, a $900 billion COVID relief package to deliver the second round of economic stimulus for individuals, families, and businesses. The Act was signed into law on Dec. 27, 2020. The relief package includes an additional $284.45 billion in funding for first-time and second draw PPP loans to help small businesses.
In addition to providing funds for first-time borrowers, the new legislation provides small businesses the opportunity to apply for a second PPP loan if they have fewer than 300 employees and can show a reduction of at least 25% in revenue in 2020 compared to their 2019 revenue. The maximum loan amount for PPP second-time borrowers is $2 million. Additionally, PPP borrowers can now deduct from their taxes any expenses paid using PPP loan proceeds.
The law creates a further simplified PPP loan forgiveness application for loans of $150,000 or less. The PPP borrower will only need to sign and submit a one-page certification. The law requires the SBA to establish this form within 24 days of enactment. This simplified loan forgiveness process is retroactive and will apply to PPP loans of $150,000 or less, including loans from the first round of funding. The law also expands the list of expenses that are eligible for loan forgiveness.
Q: When will PPP loan applications become available?
A: The Small Business Administration (SBA) initially reopened the Paycheck Protection Program (PPP) on Jan. 11, 2021 to community-based lenders. The SBA then reopened the PPP process to all participating SBA-approved lenders on Tuesday, Jan. 19, 2021. More information and SBA lenders can be found at the SBA.gov.
Q: Can I apply for a PPP loan within QuickBooks Capital?
A: QuickBooks Capital is only able to assist borrowers with loans of up to $150,000. Additional QuickBooks Capital eligibility requirements apply. The loan amount available through QuickBooks Capital may therefore be lower than the amount for which you are qualified. Our lending partner, Cross River Bank may be able to assist you directly with a loan of more than $150,000 because they may use additional payroll expense periods and support calculations
Q: I already took out a PPP loan through QuickBooks Capital. Can I get another QuickBooks Capital loan?
A: Some QuickBooksOnline Payroll, Intuit Online Payroll and QuickBooks Desktop customers may be eligible for a second PPP loan from QuickBooks Capital. Eligible QuickBooks customers that received PPP funding in 2020 from QuickBooks Capital can apply for another loan, whether they have started their loan forgiveness application process or not. The QuickBooks team built an automated, online second PPP loan application experience exclusively for customers:
- who have previously received a PPP loan by applying through QuickBooks Capital, and
- are seeking a second PPP loan of up to $150,000.1
Read more about the step-by-step application process for eligible QuickBooks customers here.
PPP borrowers that have fewer than 300 employees and can show a reduction of at least 25% in revenue in 2020 compared to their 2019 revenue are eligible for a second PPP loan.2 The maximum loan amount for PPP second-time borrowers is $2 million.
Q: Who is eligible for a second PPP loan?
A: The new law states that PPP borrowers with fewer than 300 employees and can show a reduction of at least 25% in revenue in 2020 compared to their 2019 revenue (among other requirements) are eligible for a second PPP loan. We are currently working on a way to support our customers during this next round of PPP funding.
Q: Are you providing a first-time PPP loan application within QuickBooks Capital?
A: QuickBooks Capital is not providing a PPP loan application to first-time borrowers at this time. Eligible customers interested in applying for a first-time PPP loan can apply for a loan directly with Cross River Bank. The application can be found here.
Q: Who is eligible to apply for a PPP loan through Cross River Bank?
A: The CRB application is available to eligible QuickBooks customers and Intuit Online Payroll customers that QuickBooks Capital is unable to serve this round. The application can be found here.
Q: Why should I apply for a loan through Cross River Bank?
A: To provide certain eligible customers with an easily accessible and timely solution to apply for a PPP loan, QuickBooks Capital teamed up with Cross River Bank (CRB) to facilitate PPP applications from eligible QuickBooks customers directly through CRB’s platform. We know CRB will continue to take great care of you throughout the next round of PPP loan applications and loan forgiveness.
Q: How much money will I be able to apply for through PPP?
A: The new relief package includes an additional $284.45 billion in funding for Paycheck Protection Program (PPP) loans to help small businesses. In addition to providing funds for first-time borrowers, the new law provides small businesses with an opportunity to apply for a second PPP loan if they have fewer than 300 employees and can show a reduction of at least 25% in revenue in 2020 compared to their 2019 revenue.2 The maximum loan amount for PPP second-time borrowers is $2 million.
Q: I applied for a PPP loan through QuickBooks Capital before. When can I apply for loan forgiveness?
A: The new legislation calls for a simpler loan forgiveness application for PPP loans of $150,000 or less. Therefore, we are continuing to build out this online forgiveness experience within QuickBooks Capital based on this latest guidance. You will receive a notification in your account and/or via email as soon as we are ready to accept your loan forgiveness application online. Eligible customers that received PPP funding in 2020 can apply for another loan, whether they have started their loan forgiveness application process or not. For more information about PPP loan forgiveness, visit our Paycheck Protection Program loan forgiveness article.
Q: When is the deadline to apply for forgiveness for my first loan?
A: The deadline to apply for forgiveness is the maturity date of your loan. If you received your funds on or before June 5, 2020, you have a two-year term. If you received your funds after June 9, 2020, you have a five-year term.
Loan payments of principal and interest are deferred as long as you apply for forgiveness within 10 months after the last day of your Covered Period, although interest will continue to accrue during this period.
If you are unsure when you received your funds, you can confirm with the bank into which your PPP funds were deposited.
Disclaimers
1 QuickBooks Capital is only able to assist borrowers with loans of up to $150,000. Additional QuickBooks Capital eligibility requirements apply. The loan amount available through QuickBooks Capital may therefore be lower than the amount for which you are qualified. Our lending partner, Cross River Bank may be able to assist you directly with a loan of more than $150,000 because they may use additional payroll expense periods and support calculations.
2 Second PPP loans are subject to additional eligibility requirements and criteria.
Regulations and guidance from the SBA and the U.S. Department of the Treasury on the PPP are evolving rapidly and the above information may be outdated. Please refer to the latest guidance from SBA and Treasury to confirm current program rules. The funding described in this email is made available to businesses located in the United States of America and are not available in other locations. Given the large demand for additional authorized Paycheck Protection Program funds, not every qualified Paycheck Protection Program applicant will receive a loan. Previous approval of a Paycheck Protection Program loan does not guarantee approval of a second PPP loan.
Paycheck Protection Program (PPP) loans offered within QuickBooks Capital are made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC.
