The PPP program is designed to help small businesses maintain payroll in light of the COVID-19 pandemic. Eligible businesses who enroll in the program will receive a forgivable loan to use for payroll purposes, in addition to helping pay for utilities, rent, mortgage interest payments, and more. New loans are capped at $2 million, compared to $10 million before. Applicants must have no more than 300 employees, instead of up to 500, and must demonstrate at least a 25 percent drop in revenues from the fourth quarter of 2019 to the same period in 2020. The bill expands the type of covered expenses to include things like cloud computing or remote-work software; and equipment for government-mandated sanitation and social-distancing, like sneeze guards or air filtration systems.
These are called “second draw” loans, applicants who meet the qualifications above, can apply even if they previously received assistance through the CARES Act PPP Program. Details are included in the links below.
- Key Dates: The SBA resumed acceptance of PPP applications on January 11, 2021. Visit the SBA Website for PPP Application Information for more details. The portal will initially accept First Draw PPP loan applications from participating CFIs, which include Community Development Financial Institutions, Minority Depository Institutions, Certified Development Companies, and Microloan Intermediaries.
- Lender Information: PPP loans will be 100% federally guaranteed but handled by SBA-certified lenders. Lending institutions that are not currently SBA-certified but want to participate should email DelegatedAuthority@sba.gov.
- Application Information: The deadline for the latest round of applications for a PPP Loan is March 31, 2021.