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 December 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 January 11, 2021 to community-based lenders and is launching to all participating SBA-approved lenders starting Tuesday, January 19, 2021. More information and SBA lenders can be found at the SBA.gov.
Q: When will you open the application in QuickBooks to apply for a PPP loan?
A: QuickBooks Capital will soon provide an easy to use, automated, second PPP loan application process for certain eligible QuickBooks customers seeking a second PPP loan up to $150,000. Once we have more information to share, we will inform all of our eligible customers.
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: 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: QuickBooks Capital partnered with CRB during the first round of PPP funding. Together, with CRB, QuickBooks helped to fund $1.2 billion in PPP loans for QuickBooks customers in 2020. Working with CRB in the second round of PPP funding provides more QuickBooks customers with an easily accessible opportunity to apply for a PPP loan directly through CRB’s platform.
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. 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: 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.1 The maximum loan amount for PPP second-time borrowers is $2 million.
Q: I already took out a PPP loan through QuickBooks Capital. Can I get another loan?
A: We are currently working on a way to support our customers during this next round of PPP funding. Once we have more information to share, we will inform all of our eligible customers immediately.
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. 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
1Second 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.
