More PPP Loan Funds Available For Small Businesses

There is also additional money available from the Small Business Administration (SBA) for a new round of loans part of the Paycheck Protection Program (PPP) loans courtesy of the Emergency Coronavirus Relief Act of 2020. Here’s what you need to know about PPP Loan Funds:

Requirements to Take Out a 2nd PPP Loan

If you received Paycheck Protection Program loan proceeds in 2020, and wish to apply for a 2nd loan, here are the qualifications:

  • Your business must have 300 or fewer employees
  • Demonstrate a decrease in gross receipts of at least 25 percent in any quarter of 2020 compared to the same quarter in 2019.
  • Have used or will soon use the entire amount of their first loan

Requirements to Take Out an Initial Loan

If you didn’t take out a Paycheck Protection Program loan in 2020, but wish to do so now, you can still apply.

For an initial PPP loan, your business must have been open on or before February 15, 2020 and have 500 or fewer employees or independent contractors for whom the business paid salaries, compensation and payroll taxes.

Loan Forgiveness for the New PPP Loans

As with the first round of PPP loans, the new loans are eligible to be entirely forgiven is certain requirements are met. There is even a simplified application for forgiveness If the loan being applied for is less than $150,000. The maximum amount of a new round of PPP funding is $2 million.

What you need to do: The last day to apply for and receive a PPP loan is March 31. Contact your accountants and banker as soon as possible. As with the first round of loans, funds are limited are expected to quickly run out. O&S has put together a list of documents you may need to prepare the Loan Forgiveness Application here.

Should you questions or would like assistance in preparing a PPP Loan application, give us a call today!

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