Loans Issued BY Bank of America, National Association
Frequently Asked Questions (FAQs)
A1: The CARES Act, officially known as the Coronavirus Aid, Relief, and Economic Security Act, is a federal law passed in March 2020 to provide economic relief to individuals, businesses, and healthcare providers affected by the COVID-19 pandemic.
The Paycheck Protection Program (PPP) is a part of the CARES Act designed to provide forgivable loans to small businesses to help cover payroll costs, rent, and other eligible expenses during the COVID-19 pandemic.
Small businesses, nonprofits, independent contractors, and self-employed individuals were generally eligible for PPP loans. Eligibility criteria and requirements may vary, so it's essential to check with the Small Business Administration (SBA) or your lender for specific details.
PPP loans were generally calculated based on a business's average monthly payroll costs. In most cases, businesses could receive up to 2.5 times their average monthly payroll costs, up to a maximum loan amount.
Yes, PPP loans are forgivable if the funds are used for eligible expenses like payroll, rent, and utilities. A certain percentage (usually 60% or more) of the loan must be used for payroll to qualify for full forgiveness
You can apply for a PPP loan through participating lenders, such as banks and credit unions. The SBA's website provides a list of lenders who participated in the program
Required documents typically include payroll records, tax forms, and other financial documents. Consult with your lender for specific documentation requirements
Deadlines for PPP loan applications have changed over time. It's essential to check the latest deadlines on the SBA's website or with your lender.
Yes, there is a second round of PPP loans (PPP2) available to eligible businesses. Requirements and eligibility criteria for PPP2 may differ from the first round.
You can request loan forgiveness through your lender by submitting the required documentation and forms. The forgiveness application process may vary based on the size and terms of your loan.