Client Update

Paycheck Protection Program (PPP) Update

By January 25, 2021 February 4th, 2021 No Comments

The Paycheck Protection Program (PPP) now allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP Loan.  These loans qualify for full loan forgiveness if during the 8 to 24 week covered period:

    • Employee and compensation levels are maintained
    • Loan proceeds are spent on payroll costs and other eligible expenses, and
    • At least 60% of the proceeds are spent on payroll costs.

A borrower is generally eligible for a Second Draw PPP Loan if the borrower:

    • Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses.  It is not a requirement that forgiveness of the first loan has been applied for or been received.
    • Has no more than 300 employees, and
    • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

The deadline to apply is March 31, 2021A copy of the application can be found here.

 

SBA is also reopening the PPP for First Draw Loans.  These loans qualify for full loan forgiveness if during the 8 to 24 week covered period:

    • Employee and compensation levels are maintained
    • Loan proceeds are spent on payroll costs and other eligible expenses, and
    • At least 60% of the proceeds are spent on payroll costs.

The deadline to apply is March 31, 2021. A copy of the application can be found here.

 

If you have any questions, please contact us at the form below.

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