Who qualifies for an initial PPP loan?
You may qualify for a first-time PPP loan if you own a small business with fewer than 500 employees (subject to certain limited exceptions) or are an independent contractor or other sole proprietor. Your business must have been in operation on February 15, 2020. Additionally, the following groups can qualify:
- A business that operates an accommodation or food service business (NAICS Code 72) with 500 of fewer employees per location
- A business assigned a franchise operator code by SBA
- A business that receives assistance under the Small Business Investment Act
Who qualifies for a second draw PPP loan?
If you already had a PPP loan and have already exhausted all of those funds, you may also qualify for second PPP loan if you meet these criteria:
- Your business has fewer than 300 employees
- You have experienced a reduction of at least 25% in gross receipts during the first, second, third, or fourth quarter in 2020 relative to the same quarter in 2019
Entities with significant ties to China are ineligible for a second draw loan.