As Americans cash badly needed stimulus checks in the wake of COVID-19, entrepreneurs are sifting through the complexities of how to obtain their rightful share of the $284 billion earmarked for small businesses. Included in the $2 trillion CARES Act are a number of new or expanded SBA loan programs, including a second round of Paycheck Protection Plan (PPP) loans.
As part of the second COVID-19 relief package, a fresh infusion of PPP funding is now available through community financial institutions. Here are a few Round Two PPP highlights:
- If you are applying for a PPP loan for the first time or have documented revenue losses of at least 25 percent in any quarter in 2020 (compared to the same quarter in 2019) and have few than 300 employees, you are eligible to apply.
- If you did not receive a PPP loan last year, you are eligible to apply.
- If you were granted a PPP loan last year, and returned all of your PPP proceeds, you can apply for a new loan.
- If you are applying for a second PPP loan, you must have appropriately consumed your initial loan proceeds, have fewer than 300 employees and document a loss greater than 20 percent in any quarter in 2020.
- If you returned portion of last year’s PPP loan, or didn’t accept the full approved amount, you can apply for an increase based on the difference between the amount received and approved.
- If you received a PPP loan last year, you may be eligible for a second loan now. Again, the loan is limited to small businesses with 300 or fewer employees and documented losses of 25% quarter-over-quarter in 2020 compared to the same period in 2019.
As you can imagine, there other details and restrictions contained in the second round of PPP as well. So, if you have any questions, would like help applying for a PPP loan, or wish to schedule one-on-one consulting, please call us at (213) 483-2060 or click here to book an appointment. Your NEW Women’s Business Center is here for you!