Paycheck Protection Program (PPP) Loan FAQs

In March 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act established the Paycheck Protection Program (PPP) to provide economic relief to small businesses nationwide adversely impacted by the COVID-19. The PPP is administered by the Small Business Administration (SBA) with support from the Department of the Treasury. The PPP provides significant financial incentives for small businesses to hold on to current employees and bring back workers who had been laid off or furloughed, even before their business was fully back up to speed.

Designed to provide quick access to loans from the SBA for companies with 500 or fewer employees, the PPP’s intention was to help with payroll and operating costs during short-term business disruption caused by the COVID-19 pandemic. The PPP loan application period, which had been extended from July to August and most recently to December and then March 31, 2021, has now been extended to May 31, 2021.

Eligible businesses are eligible for up to $10 million in loans, which can be used for covered payroll and other expenses, such as insurance premiums, mortgage interest, rent, or utilities. Loan payments are also deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders charge small businesses lending fees.

Forgiveness is based on the employer maintaining or quickly rehiring employees and

maintaining salary levels. To qualify, borrowers must spend the loan proceeds on payroll costs or other eligible expenses, with at least 60% going towards payroll. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

You should check the Paycheck Protection Program site and work with a qualified lender if you think you might be eligible for, and want a PPP loan. 

To receive the loan, the lender must confirm that the borrower was in operation as of Feb. 15, 2020, had employees, and determine the maximum amount of the loan.

The following entities affected by COVID-19 may be eligible:

• Sole proprietors, independent contractors, and self-employed persons

• Any small business concern that meets SBA’s size standards (either the industry size standard or the alternative size standard)

• Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans organization, or tribal business concern (sec. 31(b)(2)(C) of the Small Business Act) with the greater of:

• 500 employees, or

• That meets the SBA industry size standard if more than 500
• Any business with a NAICS code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location

You should check the Paycheck Protection Program site and work with a qualified lender if you think you might be eligible for, and want a PPP loan. 

You may be able to receive some PPP deposits to your Chime account from the following lenders through Womply:

• Fountainhead 
• Harvest Small Business Finance 
• DreamSpring
• SEDCO
• Benworth

All deposits are subject to review, and we cannot guarantee yours will be accepted. We’re committed to ensuring that we find the right solutions for our members, and are working with partners to continue to accept PPP deposits administered by the Small Business Administration that are in alignment with your Deposit Account Agreement.

Your account safety is important to us. We are committed to combating fraud and reporting suspicious activity regarding Paycheck Protection Program (PPP) deposits to the Small Business Administration and US Department of Justice .  These agencies are pursuing investigations of those who file fraudulent PPP loan applications. Funds are allocated for individuals and small businesses affected adversely by pandemic-related economic loss. Chime is aware that the PPP has experienced severe fraud abuse by applicants. 

Protect yourself from potential fraud schemes related to economic stimulus programs by being aware of predatory actors looking to exploit vulnerabilities. You can find more information through the SBA – https://www.sba.gov/document/report-sba-programs-scams-fraud-alerts 

It is important to be truthful about your work status when applying for a PPP loan. Providing false information on a PPP application is a federal offense and could result in felony charges and jail time. The PPP program requires your business, sole proprietorship or independent contractor work was in existence and earning income prior to 2/15/20. Applicants must certify this fact under penalty of perjury in the loan application.