What Are PPP Loans And Why Were They Forgiven?
The PPP is a $953 billion economic business relief loan program, established during the Donald Trump administration in 2020 to help some businesses with Coronavirus.
PPP loan allows one to apply for low interest personal loans. Its amount is approximately 2.5 times the average monthly payroll cost of the applicant.
Eligibility criteria of PPP loan: 1. Business must be located in the USA. 2. Your business will be started on 15 Feb. 2020. 3. Your company should not have more than 500 employees.
The amount of the PPP loan is based on the payroll cost of the applicant.
Payroll costs include salaries, commissions, cash tips, paid leave, severance pay, pastor parsonage and housing allowance and other compensation paid to employees.
These costs are limited to $100,000 annually per employee. Payroll costs also include group health benefits and insurance and retirement benefits.