Paycheck Protection Program Loans Are Back!
Updated: Jan 18, 2021
According to Forbes, the Treasury Department has reopened the Paycheck Protection Program (PPP) with new guidance.
The small business forgivable loan program’s new terms aim to get rid of the earlier criticisms of the relief effort. More than 5,000 businesses have received about $520 billion to date, but the aid program has been bogged down with confusion concerning forgiveness eligibility and complaints that the smallest businesses were unable to gain access to much-needed support.
“Today’s guidance builds on the success of the program and adapts to the changing needs of small business owners by providing targeted relief and a simpler forgiveness process to ensure their path to recovery,” Administrator Jovita Carranza said in a joint press release issued last week by the Treasury and the Small Business Administration (SBA).
Who is Eligible for a Second PPP Loan?
Despite multiple rounds of funding assistance, many businesses continue to struggle due to the pandemic. President Trump signed a new relief package into law late last year that includes an additional $284 billion for PPP loans for businesses that missed out on the program last year and for those seeking a second round of aid.
Second PPP loan must haves:
Previously received a PPP loan and plan to or already have used the full amount for qualifying expenses
No more than 300 employees
Experienced at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020
Asked for no more than $2 million; the amount granted will be based on an applicant’s payroll
Read more to find out what’s different this time around and if you should apply!
Click here: Second Round PPP Loans- What You Need to Know