Can I still get a PPP loan if I’ve closed my business or laid off employees?
April 17, 2020
In this 2-minute read:
- Can I get a PPP loan if my business closed?
- Can I get a PPP loan if I’ve laid off employees?
- What if an employee quits or resigns? Can I still get my loan forgiven?
Due to the financial impacts of the coronavirus pandemic and customers adhering to stay-at-home orders, multiple American businesses have had to close their doors or lay off their employees—temporarily or permanently.
Many businesses in this position wonder if they still qualify for Paycheck Protection Program loans, which are intended to keep Americans employed and businesses open during this crisis.
Womply is acting as a facilitator to connect American small businesses to SBA-authorized lenders to get emergency loans for COVID-19 relief. Start your free application here, or call us at 855-208-8813 for a free consultation.
If I’ve closed my business, can still I get a Paycheck Protection Program loan?
If you’ve had to close your business between February 15, 2020 and April 26, 2020, you may still qualify for PPP loans. For businesses that went out of business prior to that time period, you aren’t eligible for this program.
In order to qualify for a PPP loan, you’ll need to restore your business and any changes that you’ve made, including employment levels and salaries, by June 30, 2020.
Want to know how much you may qualify for? Check out our PPP loan calculator
(This is assuming that the PPP, which is currently out of funding as of 4/16, is renewed with another influx of cash. Watch this post for updates.)
How long do I have to rehire employees and restore payroll in order to apply for a PPP loan?
If you’ve had to lay off employees or reduce salary levels between February 15, 2020 and April 26, 2020, you can still qualify for PPP loans.
In order to be eligible, you just need to hire back your employees (technically any employees, but of course the intent is to keep your former staff employed) and restore their salaries and hours worked to be the same that they were before this time period. You must have this done by June 30, 2020.
If you want to qualify for PPP loan forgiveness, it is imperative that you rehire your staff quickly and restore their salaries and hours in a timely manner as well. Check out our full article about PPP loan forgiveness.
Go deeper: read about how to calculate your average monthly payroll and PPP loan request amount
Want help navigating the PPP loan application process?
Womply is a verified loan agent working with approved SBA 7(a) lenders to help you through the PPP loan application and approval process. Our experienced staff will assist you with your application and pair you up with an eligible lender in your area.
To start your free application, click here or reach out to us today at 855-208-8813 for a free consultation.
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