Felon Participation

Are convicted felons eligible for the PPP?

Yes, felons are eligible for a PPP loan under certain standards.

Ineligibility is based on if an owner of 20% or more in the equity of the business is:

Currently incarcerated
Currently on probation
Currently on parole
Currently subject to an indictment, criminal information, arraignment or other means by which formal criminal charges are brought in any jurisdiction

Within the last five years for any felony has been convicted, pleaded guilty, pleaded nolo contendere, been placed on pretrial diversion or been placed on any form of parole or probation including probation before judgement.
The disqualifying rules above apply if an owner of 20% or more of the equity of the applicant are in effect.

Linked here and pasted below is the text from the official question and answer document published by the Department of the Treasury on April 10, 2020, which you should reference:

https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequently-Asked-Questions.pdf

Below is the official question from Q12 as of April 10, 2020

12. Question: I need to request a loan to support my small business operations in light of current economic uncertainty. However, I pleaded guilty to a felony crime a very long time ago. Am I still eligible for the PPP?

Below is the official answer from Q12 as of April 10, 2020

Answer: Yes. Businesses are only ineligible if an owner of 20 percent or more of the equity of the applicant is presently incarcerated, on probation, on parole; subject to an indictment, criminal information, arraignment, or other means by which formal criminal charges are brought in any jurisdiction; or, within the last five years, for any felony, has been convicted; pleaded guilty; pleaded nolo contendere; been placed on pretrial diversion; or been placed on any form of parole or probation (including probation before judgment).

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