Second Round of Paycheck Protection Program Funding Now Available
Yesterday, the Small Business Administration released documents for business owners who are first time PPP participants, second time participants, and they have shared other information about additional coronavirus relief that is available.
This new round of PPP funding can cover up to 3.5 months of salary for restaurant and hotel employees and up to 2.5 months of salaries for employees of other businesses.
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 in at least one quarter
- The maximum PPP loan for each business is capped at $2 million
- $12 billion has been earmarked for POC-owned businesses
Information for first time participants can be found here: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program/first-draw-ppp-loans
Information for second time participants can be found here: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program/second-draw-ppp-loans
While participants may request funding through their bank, other online lenders are participating in the program as well. As of right now, not all lenders are accepting applications just yet, but are expected to do so in the coming days. The SBA has created a tool to help small business owners find approved lenders, check it out here.
By: Michelle Katz @pike.and.rozay