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the head of an executive department,  a member of   partner that uses the funds incorrectly, the SBA will be able
             Congress, or the spouse of such a person, directly   to proceed against those individuals.
             or indirectly owns, controls, or holds a controlling
             interest in the entity (at least 20% of any class of equity   May I or my business receive a PPP loan if my business
             interest by vote or value); or                    has filed bankruptcy?
           8. A publicly traded company, defined as an issuer, whose   No, if the applicant or the owner is a debtor in a bank-
             securities are listed on an exchange that is registered   ruptcy proceeding at any time after he/she submits the
             as a national securities exchange under Section 6 of   application or before the loan is disbursed, the applicant
             the Securities Exchange Act of 1934 (15 U.S.C. 78f).  becomes ineligible.  If the applicant applies for a PPP loan
                                                               and later files bankruptcy, it must immediately notify the
        Important Points for Recipients                        lender to cancel it.
           1. Second PPP Loans do not require personal guarantees.
           2. Second PPP Loans do not require collateral.      What if I forget to cancel the PPP loan after filing
           3. The interest rate will be 100 basis points or one   bankruptcy?
             percent, calculated on a non-compounding, non-adjust-  The lender and SBA will consider the use of the PPP
             able basis.                                       funds as unauthorized and may bring forth fraud charges.
           4. The maturity date for the Second PPP is five (5) years.
                                                               I am self-employed and file a 1040 Schedule C. May I
        Some Frequently Asked Questions                        receive a PPP loan?
        What happens if the PPP funds are used incorrectly?       You are eligible for a PPP loan if:
           The SBA will direct the recipient to pay back the funds. If a re-  • you were in operation on February 15, 2020;
        cipient uses the PPP funds knowingly for an unauthorized   • you are an individual with self-employment income
        purpose, the recipient could be subject to fraud charges.   (such as an independent contractor or a sole
        If the recipient is a business, a shareholder, member, or   proprietor);

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