PayPal PPP Loan First Draw: Eligibility and Application Process Explained

The PayPal Payment Protection Program (PPP) has reopened for first draw loans, providing relief to small businesses and eligible entities affected by the COVID-19 pandemic. In this article, we will delve into the eligibility criteria and application process for a PayPal PPP Loan First Draw.

Eligible Entities

Entities with more than 500 employees in certain industries that meet SBA's alternative size standard or SBA's size standards for those particular industries can also apply for a PayPal PPP Loan First Draw. This includes existing PPP borrowers who did not receive loan forgiveness by December and are looking to reapply for a first draw loan.

Additionally, eligible small entities with 500 or fewer employees, including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors, can apply for a PayPal PPP Loan First Draw.

Loan Application Process

The application process for a PayPal PPP Loan First Draw is straightforward. Borrowers can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, eligible non-bank lender, or Farm Credit System institution that is participating in PPP.

Funds from the loan can be used to pay for various expenses, including payroll costs, mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations. At least 60 percent of the loan proceeds must be spent on payroll costs.

Loan Forgiveness

First Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if certain conditions are met. These conditions include maintaining employee and compensation levels during the 8- to 24-week covered period following loan disbursement.

The SBA reopened the Paycheck Protection Program (PPP) for First Draw Loans on January 11, 2021, providing a second chance for eligible businesses to access funds. By understanding the eligibility criteria and application process, small businesses can take advantage of this opportunity and receive the financial support they need to recover from the pandemic.

In conclusion, the PayPal PPP Loan First Draw is an excellent opportunity for eligible entities to access much-needed funding during these challenging times. With a clear understanding of the eligibility criteria and application process, borrowers can navigate the loan application process with confidence and take advantage of the benefits offered by this program.

Paypal ppp loan first draw