![]() Can demonstrate a 25% reduction in gross revenue from any quarter in 2020 compared to the same quarter in 2019.Have already used or will use the full amount of their first PPP loan.Previous PPP loan recipients who meet the following criteria are eligible to apply: Food services or hospitality businesses (with NAICS codes starting with 72) that have fewer than 300 employees per physical location.Sole proprietors, independent contractors, and self-employed people.Small businesses, 501(c)(19) veteran’s organizations, tribal businesses, and small agricultural cooperatives that meet the SBA’s size standards.Small businesses or nonprofit organizations with 500 or fewer employees that qualify for other SBA 7(a) loans.Previous PPP loan recipients who returned all or part of their original loan and want to apply for additional fundingĮvery business that applies for a PPP loan needs to have been in operation since at least Februto be eligible.įirst-time PPP borrowers from the following groups are eligible to apply:.Previous PPP loan recipients who need a second loan and meet certain criteria.Qualified small businesses that did not receive a PPP loan during the first round of funding.The new round of PPP loans will be available to three categories of businesses: Who’s Eligible to Apply For New PPP Loans? Another $12 billion is dedicated to supporting businesses in low-income and minority communities. The bill also states that $20 billion will be set aside to provide Economic Injury Disaster Loan (EIDL) grants to businesses in low-income communities.Īnother $15 billion is going toward Shuttered Venue Operator Grants, which give money to independent movie theaters, cultural institutions, and live venues that have been forced to close their doors. Under the new legislation, the SBA is getting over $284 billion in funding for first and second-time PPP loan borrowers. Now, to offset these losses and help a greater number of small businesses recover, Congress is amending a handful of terms and requirements around PPP loans. Many small businesses were ignored by bank lenders, while others didn’t receive a loan before the PPP closed in August 2020. Though the program helped countless small businesses stay afloat amid COVID-19 shutdowns and restrictions, the Paycheck Protection Program wasn’t a cure-all for the small business economy. The loans required no collateral or personal guarantees.Business owners could get their loans forgiven if they used at least 60% of the money to cover payroll costs.Qualified businesses could receive 2.5 times their average monthly payroll costs up to $10 million.Here are a few key facts about the first round of PPP loans: Unlike other SBA loans, PPP loans are designed to be partially or fully forgivable, meaning you won’t have to pay them back as long as you follow certain rules. The program - which ran from April to August 2020 - initially allotted $349 billion in funding to small businesses, then injected another $320 billion to help satisfy the high demand of applicants. Issued as part of the CARES Act in March 2020, the PPP gave small businesses and independent contractors loans to cover payroll costs for a period of up to eight weeks. The following guide outlines everything you need to know about the updates before you apply for PPP loan funding. ![]() To get prepared for a PPP loan, it’s critical to read up on the latest eligibility requirements and terms so you know where you stand and how to prepare. Small businesses may be able to apply for a loan as early as January 15, 2021. Once the SBA reopens the program, it will run through March 31, 2021, or until funds run out (whichever comes first). The new COVID-19 relief bill has two main purposes: 1) to offer funding to small businesses that didn’t receive a PPP loan the first round and 2) to give certain qualified businesses the chance to get a second PPP loan. Congress recently passed the “Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act,” in part to reauthorize the Paycheck Protection Program (PPP) that ended in August 2020. If your business is struggling after nine months of COVID-19-related shutdowns and challenges, help is on the way. However, information around the PPP can change quickly, so check back here or on the SBA site for the latest details. Disclaimer: This article is updated as of January 22, 2021.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |