If you received a PPP loan in 2020, you may be eligible to apply for a second PPP loan if your business suffered a loss in revenue in 2020. … This means, like the first PPP loan, the second round of PPP loans will also be fully forgivable if you follow the forgiveness guidelines.
Thereof, can you go to jail for PPP loan?
Depending on the circumstances, the federal government might charge people accused of defrauding the PPP under the following provisions: 15 U.S.C. § 645: Making a false statement to the SBA. This can result in a fine of up to $5,000 and up to 2 years in prison.
People also ask, how long do you have to use PPP Round 2?
Unless Congress extends the program, PPP Round 2 applications will be accepted through May 31, 2021 or until the funds are exhausted. APPLY AS SOON AS YOU CAN.
Is there a second round of PPP coming?
Guidance from the Small Business Administration (SBA), the U.S. federal government & banks evolved over time. And a second round of PPP funding round surfaced in early January 2021. PPP Round Two ran out of funding in May 2021.
What can second round of PPP be used for?
The second round is forgivable if used for the appropriate covered expenses. … Other covered expenses include operational expenses, supplier costs, worker protection expenses, utility costs, rent or mortgage interest payments, and property damage. The funds are forgivable just like the first round of PPP loans.
What documents are needed for 2nd PPP loan forgiveness?
Federal payroll tax filings (IRS Form 941) Income, payroll, and unemployment insurance filings from your state. Receipts for employer contributions to group benefit plans. Receipts for any retirement plan contributions.
What happens if you get two PPP loans?
There is no risk of being flagged for fraud for applying more than once. In fact, it’s a good idea to apply for your second PPP loan with multiple lenders to maximize your chance of obtaining funding.
What if I missed the PPP forgiveness deadline?
Missing the deadline will initiate monthly payments with interest. After the deadline, borrowers may still seek forgiveness up until their loan matures, which could be either two or five years.
What is the covered period for PPP loan forgiveness 2021?
COVERED PERIOD:
The covered period is the period beginning on the date the lender disburses the PPP loan and ending on the date selected by the borrower that is at least 8 weeks following the date of loan disbursement and not more than 24 weeks after the date of loan disbursement (the “Covered Period”).