Everything Salon Pros Need to Know About Applying for a PPP Loan


If you’re a salon pro who’s struggled to keep your business afloat throughout the on-going coronavirus pandemic, a PPP loan could be just the resource that you need to make ends meet. If you haven’t heard, President Joe Biden recently just made it a lot easier for small businesses — including salons and barbershops — who have been negatively impacted by COVID-19 to receive funds (we’re talking $284 billion!) to support their operations. For a two-week period ending on March 9th, salon pros will be able to exclusively apply for PPP relief to support their businesses during these trying times.

If you’re in need of assistance and don’t know where to start, no worries! The Tease has got you covered on practically everything you need to know. From loan eligibility to loan forgiveness, here’s our guide to applying for your PPP loan.

What is the Paycheck Protection Program?

You’ve likely heard the term “PPP” being thrown around over the last year. For those who don’t know, PPP stands for Paycheck Protection Program which is a service that offers forgivable loans to businesses so they can continue to pay their employees during the coronavirus pandemic. The best part is that these loans are eligible to be repaid in full or forgiven so long as specific criteria are met.

The PPP is administered by the Small Business Administration (SBA) who is responsible for matching businesses owners with approved lenders for their loans. Originally created in March 2020 as a part of the federal government’s $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act, as of writing, the program has approved over $662 billion through a cumulative seven million loans, according to data from the SBA.

Is my business eligible for PPP?

Naturally, the question on every salon pro’s mind is whether or not they can apply for PPP.

Thankfully, President Biden made answering this question just a bit easier for the salon industry as a whole. If you are a salon or barbershop owner with fewer than 20 employees you are eligible to apply for a PPP loan during the two-week exclusivity period for small businesses which runs from February 24th to March 9th. After this window ends, all eligible businesses will be able to apply for the program.

But more than just employers and shop owners are eligible for a loan. Sole proprietors, independent contractors, and booth renters can also apply as well.

As for the other requirements that need to be met, they are pretty simple:

  1. Your business must have been in operation on February 15, 2020.
  2. Your business must have been impacted by the COVID-19 pandemic.
  3. You must submit the required documentation along with your loan application.

It’s important to note that if you are a first-time borrower, you will need to apply for a First-Draw PPP loan. Otherwise, you can apply for a Second-Draw loan if you previously received a PPP loan.

How can salon pros apply for PPP?

For salons pros looking to receive PPP relief for their business, there are two options available for submitting their application. The first option is to apply through the SBA website. Both applications for the First-Draw and Second-Draw loan are available on their site.

The other option is to apply through an online portal that the Professional Beauty Federation of California has created to streamline the application process. The PBFC will require you to fill out a brief questionnaire before allowing you to proceed with your PPP application.

With either option, after you submit your application, the SBA will pair applicants with potential lenders to compare rates, terms, fees, and other important information. Throughout this process, lenders will connect and communicate with salon pros over email.

What should I know about my loan?

So, you finally received your loan (YAY!), here are important things to know about your new funds before you put them to use:

  • PPP loans can be used to help fund payroll costs (including benefits) and may also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting and vandalism during 2020, and certain supplier costs and expenses for operations.
  • PPP loans have an interest rate of 1%.
  • PPP loans issued prior to June 5, 2020 must be paid back in two years and loan issued after June 5, 2020 must be paid back in five years.
  • Loan payments will be deferred for borrowers who apply for loan forgiveness until SBA cancels the borrower’s loan forgiveness amount to the lender. If a borrower does not apply for loan forgiveness, payments are deferred 10 months after the end of the covered period for the borrower’s loan forgiveness (between 8 weeks and 24 weeks).
  • No collateral or personal guarantees are required for your loan. 
  • Neither the government nor lenders will charge small businesses any fees.

How can salon pros apply for loan forgiveness?

When it comes to your PPP loan, salon pros may be eligible to have their debt forgiven in full. In fact, any small business owner can apply for loan forgiveness so long as they spend the entirety of their loan amount. To be considered for PPP loan forgiveness, you must meet the following criteria:

  • Your business must maintain all employee and compensation levels meaning there can not be furloughs and pay cuts for any of your stylists and employees. 
  • All loan proceeds must be spent on payroll costs and other eligible expenses as listed in your terms.
  • At least 60 percent  of the proceeds must be spent on payroll.

It’s important to note that any salon pro interested in being considered for loan forgiveness must apply within 10 months after the last day of their loan’s covered period. This will allow repayments to be frozen until federal funding is processed. Otherwise, borrowers will have to begin making payments to their lender.

Here are the steps required to apply for loan forgiveness:

  1. Contact your PPP lender and complete the correct form. Be sure to visit the SBA website to figure out which form is best suited to your situation.
  2. Compile both your payroll and non-payroll documentation.
  3. Submit the forgiveness form and documentation to your PPP lender.
  4. Continue to communicate with your lender throughout the process until completion.

Now that we have given you the low-down on how to receive PPP funds for your business, we highly encourage you to submit your PPP relief application ASAP! For more information about the PPP, we highly encourage you to visit the SBA’s frequently asked questions page.

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Camille Nzengung

Camille Nzengung is a Features Editor at The Tease, where she covers all things hair. You can find her writing about the best hair products, the coolest hair trends, and all the exciting new hair launches.


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