PPP Second Round Now Open
The U.S. Small Business Administration (SBA) and the Treasury Department have launched a second round of the Paycheck Protection Program (PPP), opening the week of January 11, 2021. This relaunch of the program prioritizes small businesses, authorizing $284.5 billion to be distributed through March 31, 2021, or until the funds are depleted.
What you need to know:
- Only businesses with 300 or fewer employees AND those that can show at least a 25% reduction in gross revenues from comparable quarters in 2020 and 2019 are eligible.
- The maximum loan size is 2.5 times the average monthly payroll costs for non-food service businesses, up to $2 million. If this is your first time receiving PPP, the maximum pay-out is $10 million.
- Small businesses in the Accommodation and Food Services industry can receive Second Draw loans up to 3.5 times their average monthly payroll costs.
- Borrowers will receive full loan forgiveness if they spend at least 60% of their PPP Second Draw loan on payroll costs over 8 to 24 weeks.
If you have questions about applying for PPP, contact your lender. If you don’t have a lender, find a list of chamber members via our Member Directory.