New PPP Funding Could Cover up to 3.5 Months of Salary for Restaurant and Hotel Employees, up to 2.5 Months for Other Businesses
This past Sunday, a $900 billion Coronavirus Relief Act was signed. This national stimulus package will allow a second wave of the Paycheck Protection Program to occur, among other things.
Some items to note about the second round of PPP funding:
- Restaurants and hotels can receive funding for up to 3.5 months of employee paychecks, all other small businesses can receive funding to cover up to 2.5 months of paychecks
- Small businesses can apply for the second round even if they already received funding from the first round
- Similar to the first round of PPP, business owners will need to apply directly through their banks
- Only businesses with fewer than 300 employees can apply
- Businesses are required to apply a minimum of 60% of funds received towards employee payroll
- Businesses have to prove they had at least a 25% decrease in business in 2020
- The maximum PPP loan for each business is capped at $2 million
- $12 billion has been earmarked for POC-owned businesses
As of right now, a timeline for applying has not been announced.
By: Michelle Katz @pike.and.rozay