Beauty Pros Will Be Prioritized In PPP Loan Program
How To Apply For PPP Loans + Eligibility Requirements
Self-employed/sole proprietors and companies with fewer than 14 employees are being prioritized in the federal Paycheck Protection Program (PPP) for the next two weeks. Beauty industry financial relief applicants can apply to receive these forgivable loans.
President Biden said he would direct the Small Business Administration to only accept PPP applications from very small businesses and sole proprietors for two weeks beginning Feb. 24, 2021.
What Is The PPP?
PPP loans are forgivable loans intended to help small businesses keep employees on payroll through the pandemic. When the most recent COVID-19 stimulus package passed, the PPP reopened with $284 billion, after closing applications for the first round of loans in August 2020. This round specifically designates $12 billion for minority-owned and very small businesses. Click here to learn more about the original PPP program, including how you can use the loan and how to apply for a loan.
How Can I Apply?
Small businesses, including sole proprietors, independent contractors and the self-employed, can apply for PPP loans. The federal government encourages applicants to work with their existing bank to apply or to find a Small Business Administration-approved lender.
For beauty pros, including hair, nails, skin, barbering and lash professionals, who do not have an existing relationship with an SBA-approved lender, the Professional Beauty Federation of California (PBFC) partnered with a SBA-approved lender Adesso Capital. Click here to access the PBFC’s PPP loan info.
What Are the Loan Details?
To be eligible for a PPP loan, your business must:
- Have been in operation on February 15, 2020
- Have been harmed by the COVID-19 pandemic
- Have the required documentation as part of the loan application
Some more details on PPP loans:
- PPP loans have an interest rate of 1 percent.
- No collateral or personal guarantees are required.
- Small businesses will not be charged any fees by the government or lenders.
Loan forgiveness is based on several factors, and loan professionals can assist applicants to qualify for the maximum amount under law. The federal government will forgive loans if all employee retention criteria are met and the funds are used for eligible expenses.