Small Business Concerns Qualification

Do businesses need to qualify as a “small business concern” under the SBA Act in order to participate in PPP?

No. Small businesses do not have to qualify as a “small business concern” under the SBA Act in order to qualify for the PPP. A company may still be eligible if it has 500 or fewer employees whose principal place of residence is in the US or if the business meets the SBA employee based size standards for the industry in which it operates.

PPP Loans are also available for

qualified 501(c)(3) non profit organizations
Tax exempt veterans organizations
Tribal business concerns
Or if they meet the SBA employee based size standards for the industry they operate in.
- Go to www.sba.gov/size for the industry size standards.

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 Q3 as of April 10, 2020

3. Question: Does my business have to qualify as a small business concern (as defined in section 3 of the Small Business Act, 15 U.S.C. 632) in order to participate in the PPP?
Paste official answer here.

Below is the official answer from Q3 as of April 10, 2020

Answer: No. In addition to small business concerns, a business is eligible for a PPP loan if the business has 500 or fewer employees whose principal place of residence is in the United States, or the business meets the SBA employee-based size standards for the industry in which it operates (if applicable). Similarly, PPP loans are also available for qualifying tax-exempt nonprofit organizations described in section 501(c)(3) of the Internal Revenue Code (IRC), tax-exempt veterans organization described in section 501(c)(19) of the IRC, and Tribal business concerns described in section 31(b)(2)(C) of the Small Business Act that have 500 or fewer employees whose principal place of residence is in the United States, or meet the SBA employee-based size standards for the industry in which they operate.

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