Payroll Protection Program 2
Opens Monday, January 11th for first time PPP borrowers (financial institutions can begin making loans)
ELIGIBILITY:
DOCUMENTS:
- Opens Wednesday, January 13th for second time PPP borrowers (financial institutions can begin making loans)
- The forgivable PPP loans will open to all lenders “shortly thereafter”
- The closing date for the new PPP is March 31
- Loan covered period to be any length between eight and 24 weeks to best meet their business needs
- To be eligible for full loan forgiveness, borrower will have to spend at least 60% of their loan on payroll over covered period
- Additional expenses eligible are operations expenditures, property damage costs, supplier costs, and worker protection expenditures
- Clearer definition of seasonal employees
- Existing PPP borrowers are eligible to apply for a second PPP loan
- Permanently closed businesses do not qualify
- Loans over $150,000 will have to provide the documentation to show the decline of 25% gross revenue
- Loans below $150,000 will have to provide the documentation upon or before seeking loan forgiveness for the second draw
ELIGIBILITY:
- Up to $2 million to borrowers
- 300 or fewer employees
- NAICS 72 (restaurants, venues, etc.) have 500 or fewer employees
- Now eligible are 501 (c)6, housing cooperatives, direct marketing organizations
- Business must have been in operation no later than February 15, 2020
- Used or will use the first PPP loan full amount before expected date of the second PPP loan
- Had to have had at least a 25% revenue deduction in all or part of 2020 compared to all or part of 2019 (full year or any quarter of 2020 compared to equal quarter of 2019)
DOCUMENTS:
- First loan overview: https://home.treasury.gov/system/files/136/Top-line-Overview-of-First-Draw-PPP.pdf
- First loan application: https://www.sba.gov/document/sba-form-2483-paycheck-protection-program-borrower-application-form
- Second loan overview: https://home.treasury.gov/system/files/136/Top-line-Overview-of-Second-Draw-PPP.pdf
- Second loan application: https://www.sba.gov/document/sba-form-2483-sd-ppp-second-draw-borrower-application-form
- SBA additional information and documents: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program