Is PayPal accepting applications for SBA Paycheck Protection Program (PPP) loans?

Q1. Is PayPal facilitating new, first time Paycheck Protection Program (PPP) loans and PPP Second Draw loans to PPP loan borrowers, under the Covid Relief Bill?

PayPal is participating in the PPP to provide businesses access to additional PPP loan funding. This includes both first time PPP loans for those who have not previously received a PPP loan, as well as Second Draw loans for those who have received a prior PPP loan. In either case, all SBA PPP requirements must be met.
 
The best place to get additional information and updates on the availability of PPP loans through PayPal is at PayPal.com/PPPloan.
 

Q2. How long will PayPal offer access to PPP loans?

Congress recently extended the PPP. The SBA will now accept PPP loan applications through May 31, 2021. PayPal will continue to process applications for submission to the SBA through May 31, 2021, (unless PPP loan funding is depleted before that date), but intends to stop accepting new applications prior to May 31st.  
 
The best place to get additional information and updates on the availability of PPP loans through PayPal is at PayPal.com/PPPloan.
 

Q3. What can PPP loans be used for?

Loans can be used to help fund payroll costs, including benefits. Loan funds can also be used to pay for 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.
 
We recommend visiting the SBA PPP website for all details.
 

Q4. Who will be eligible for the new PPP loans?

PPP loans for first time borrowers are generally available to businesses that have not previously received a PPP loan, have 500 or fewer employees, and meet all other eligibility requirements.

PPP Second Draw loans are generally available to businesses with no more than 300 employees that have used the full amount of their first PPP loan for permitted purposes and can demonstrate at least a 25% reduction in gross receipts in the first, second, third, or fourth quarter of 2020 relative to the same 2019 quarter or for calendar year 2020 as compared to calendar year 2019. Special rules apply for businesses formed in 2020. All other eligibility requirements must also be satisfied.

We recommend reviewing the first time PPP loan Borrower Application FormSecond Draw Borrower Application Form and other program information on the SBA PPP website for more details.
 
Businesses, including self-employed individuals and independent contractors, are able to apply through PayPal by going to PayPal.com/PPPloan.
 

Q5. If I received a first time PPP loan, but have not applied for forgiveness, am I still eligible to apply for a Second Draw PPP loan?

Yes. Borrowers who will have used the full amount of their first PPP loan for eligible purposes under the SBA rules before the disbursement of the Second Draw loan are eligible to apply for a Second Draw loan. However, the borrower is not required to have applied for or received forgiveness on their initial PPP loan in order to apply for a Second Draw loan. Other eligibility rules apply.  
 
We recommend reviewing the Second Draw Borrower Application Form for all Second Draw loan eligibility requirements.
 
Businesses, including self-employed individuals and independent contractors, are able to apply through PayPal by going to PayPal.com/PPPloan.
 

Q6. If my first PPP loan is with another lender, can I apply through PayPal for PPP Second Draw loan?

Yes. If you have an existing PPP loan with a different provider, you can apply for a PPP Second Draw loan through PayPal. You will need your 10-digit SBA/E-Tran number from your first loan to complete the PPP Second Draw loan application.
 
Businesses, including self-employed individuals and independent contractors, will be able to apply through PayPal by going to PayPal.com/PPPloan.
 

Q7. Is PayPal supporting the revised loan amount calculation formula for applicants who file taxes using IRS Form Schedule C?

Yes. PayPal is supporting the changes published by the SBA on March 3, 2021, that are designed to increase the amount of PPP funding reaching America’s smallest businesses.
 
The changes include a new PPP loan amount calculation formula for sole proprietors, self-employed individuals, independent contractors and single member LLC applicants who file taxes using IRS Form 1040 Schedule C. The new formula allows applicants to use 1040 Schedule C line 7, Gross Income, as the basis for including owner salary and wages in the computation of their PPP loan amount, instead of line 31, Net Profit, up to a maximum amount of $100,000.
 
Sole proprietors, self-employed individuals, independent contractors and single member LLC applicants who file taxes using IRS Form 1040 Schedule C are able to apply through PayPal by going to PayPal.com/PPPloan.
 

Q8. Where can I get more information about the new PPP loans?

To get additional information and updates on the availability of these loans through PayPal visit PayPal.com/PPPloan.
 
Application forms, overviews and detailed rules can also be accessed directly from the SBA PPP website.
 

Q9. Who is the lender for the PPP loans provided through PayPal?

The lender for the PPP loans available through PayPal is WebBank, Member FDIC. 

 
IMPORTANT NOTE: 
The SBA continues to produce new and revised guidance on the Paycheck Protection Program. The information on this web page is provided to assist in generally understanding the PPP loan program. The information on this web page should not be relied upon as legal, tax, or financial advice. Please check the SBA website for published guidance and details. 
 

The lender for the Paycheck Protection Program Loan through PayPal is WebBank, Member FDIC.