12/8/2023 0 Comments Paypal ppp round 3Then in December, additional funding was provided for the PPP, which funded the third round of PPP loans. This Act was signed into law in April of 2020 just one month after the CARES Act passed. That’s why it was ultimately renewed through a secondary act, the PPP and Health Care Enhancement Act. The PPP loan program was very successful from the beginning. Borrowers who used PPP funds appropriately but can’t pay back the loan now can apply for loan forgiveness. These loans were provided by private lenders, but they’re backed by the Small Business Administration. The program accomplished this by proving PPP loans that were meant to get used for: This program was designed to help small businesses continue to pay employees despite the stay-at-home, work-from-home, and virtual schooling situations. To prevent a domino-like effect, the government created the Paycheck Protection Program when Congress passed the CARES Act. What is the Paycheck Protection Program?įirst, we need to answer the questions – what is a PPP loan, and what’s the Paycheck Protection Program? At the height of the coronavirus pandemic, politicians were worried that a lack of business would disrupt employment, which will further derail the economy during the crisis. Not only do you need to understand how to pay back the loan, but you also need to know the tax implications of accepting that money or having your loan forgiven, too. If you received emergency relief through the PPP program, then there are a few important things you need to know. For hundreds of businesses, that means the bill has come due despite the ongoing pandemic situation. PPP loan round 3 programs, which were authorized in December of 2020, expired on May 31, 2021. Among those, about 77% got all the money they requested, which came at a cost of more than $770 billion. Did your business rely on PPP loan round 3 to survive the pandemic? More relief isn’t likely in 2022.Īccording to data compiled by the Federal Reserve, about 82% of small employers applied for a PPP loan during the pandemic.
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