PPP Funding Status: PPP Loans vs. ERTC Program in 2022 and Beyond

As of August 2023, the Paycheck Protection Program (PPP) has officially ended, with the majority of its funds having been allocated. Since its inception as part of the federal government's response to the COVID-19 pandemic, the PPP has provided loans to small businesses, aiding in the retention of employees and covering essential expenses.

End of the PPP Program

By the end of the program in May 2021, approximately $800 billion had been distributed. However, specific remaining balances or unallocated funds can vary based on repayments and any funds that were not disbursed during the program's active period. For the most up-to-date information on remaining PPP funds or any ongoing programs related to COVID-19 relief, it is recommended to check the official Small Business Administration (SBA) website or other reliable financial news sources.

No PPP Funding for 2022

It is important to note that funding for PPP loans will no longer be available in 2022. Small businesses seeking financial assistance must now explore other options, including the Employee Retention Tax Credit (ERTC) program.

Qualifications for the PPP

To qualify for the PPP, your business must have been in operation since at least February 15, 2020. Additionally, the business must fit into one of the following categories:

Remember, a PPP loan is a loan that may be forgiven, but it still requires repayment similar to any other loan. For businesses that prioritize forgiveness without the necessity of repayment, the ERTC program might be a better fit.

ERTC Program: A Non-Repayable Alternative

While the PPP program ended, small businesses are still in luck as the Employee Retention Tax Credit (ERTC) program remains available. The ERTC program is a non-repayable credit that offers significant financial benefits to eligible businesses. Below are some key points about the ERTC program:

Who Can Qualify?

Any US business owner that has been in business since February 2020 or prior, with 5 or up to 500 employees and who receives W-2s, qualifies for the ERTC program. Whether you have received a PPP loan or not does not affect your eligibility for the ERTC.

Benefit Amounts and Restrictions

The ERTC program does not have any restrictions on how the credit can be used. The amount of the credit can vary from $50,000 to millions, depending on the number of employees you have. This is a non-repayable credit that can be claimed via a straightforward process with no upfront fees.

Specific Details After the PPP Program

According to the SBA, as of May 31, 2021, the SBA had disbursed $800 billion out of the $813.5 billion appropriated by Congress. Furthermore, in Round Three of the PPP, only $6 billion or 2 percent of the funds remained available.

For many US business owners, awareness of the ERTC program, which offers non-repayable credit and no financial restrictions, is still low. The ERTC program is designed to support businesses on a non-repayment basis, making it a valuable resource for US business owners with five or more employees.

To learn more about the ERTC program, you can file your claims within 90 seconds through a direct process. There are no upfront fees associated with this program, which makes it an attractive option for small businesses seeking financial support.

The ERTC program is a crucial resource for small businesses that have been operating since February 2020 or prior. It offers non-repayable credits and no restrictions, making it a potentially significant benefit for qualifying businesses.