Learn about PPP small business loans and eligibility requirements
Prepare your business for a PPP loan and calculate its potential value
Find an eligible PPP lender and walk through the application process
Learn how to document your business expenses for future PPP loan forgiveness
The U.S. Small Business Administration (SBA) announced that the Paycheck Protection Program (PPP) will re-open this week, with an additional $284.5 billion authorized in the recently approved stimulus bill. This means two things:
- Eligible business owners that have not yet received a forgivable PPP loan can still take advantage of the program to receive up to 2.5 months of payroll (including net profit or owner distributions if you are self-employed) -- "First Draw"
- Businesses with 300 employees or less that have received a PPP loan already may qualify for a "Second Draw" of funds if their revenue is down 25% from 2019, they have no more than 300 employees, and they continue to need assistance after exhausting their "first draw" PPP loan. These loans will be capped at either 2.5 months of payroll or $2 million.
The PPP program has become more flexible over time. Here are some highlights. Stay tuned for more detailed guidance.
- Forgiveness has been streamlined for loans under $150,000
- PPP loans can be used to cover more expenses than they originally could, including operating expenses, property damage, supplier costs, and worker protection costs
- PPP borrowers can set their PPP loan’s "covered period" to be any length between 8 and 24 weeks to best meet their business needs
- The PPP program provides greater flexibility for seasonal employees;
- The amount forgiven will no longer be reduced if you received an EIDL advance
- Tax-deductible expenses paid with your PPP loan may still be deducted
- The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations
Lenders will begin accepting applications on January 11th, 2021; the deadline to apply is March 31, 2021