What is a free grant?

What is a free grant?

Sometimes, it’s an ad that claims you will qualify to receive a “free grant” to pay for education costs, home repairs, home business expenses, or unpaid bills. In either case, the claim is the same: your application for a grant is guaranteed to be accepted, and you’ll never have to pay the money back.

How long does it take to receive a grant?

three to six months

Are PPP loans forgivable?

Borrowers will have their loans forgiven if they use the money for designated expenses. Mortgage interest, rent and utilities are also forgivable, up to 40% of the PPP loan. (Note that if your loan is forgiven, theses expenses covered by the loan are not tax-deductible, the IRS recently stated in Notice 2020-32.)24

What are the rules for PPP loan forgiveness?

PPP forgiveness for self-employed individuals You are eligible to claim 2.5 months’ worth of your 2019 or 2020 net income to replace pay. Loans received after March 3, 2021 can use their 2019 or 2020 gross income if they used their gross income to apply.19

Is there a deadline to apply for PPP loan forgiveness?

There is no deadline to apply for PPP loan forgiveness. PPP loans have a covered period of 8 to 24 weeks after the funds hit your bank account. Once that covered period ends, your loan payments are deferred for 10 months.15

Can I pay my employees more with the PPP loan?

Can I use all the PPP funds to pay myself? No, and this applies to all small businesses. Keeping your employees laid off and increasing your own pay goes against the purpose of the program. Your forgivable amount would be reduced because your headcount was lower than before.19

Can 100 of PPP loan be used for payroll?

You won’t be able to qualify for 100% forgiveness unless you rehire staff you laid off after February 15, 2020. Don’t cut jobs or salaries. You’ll have to pay back a larger portion of the loan if you cut employees or their wages.12

Do employees have to pay back PPP?

Your employer has to account for all the monies spent in the eight-week period beginning from the date of the origination of their PPP loan and will be responsible for paying back any funds not spent on payroll or other very limited categories.5

How much can I pay myself with PPP loan?

Independent contractors who receive a PPP loan can use up to $15,384 of what they’re awarded as compensation for themselves for the eight-week period and still have at least that part of the loan forgiven. As compensation to themselves, it acts as a payroll cost.1