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

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

 

 

About the Author

Michelle Katz
Michelle Katz has lived in MoCo for most of her life– she was born and raised in the Gaithersburg area and now lives in Rockville. ⁣ ⁣ She is currently a high school art teacher in MCPS. In addition to teaching and working at the MoCoShow, Michelle also runs a local instagram account, @pike.and.rozay, where she features food photography from restaurants in Pike & Rose and the surrounding area. ⁣ ⁣ She is passionate about supporting local businesses and enjoys the opportunity to help keep everyone in the MoCo community informed.

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