SBA Announces Round 2 of PPP Funds
The Small Business Administration’s (SBA) PPP Round 2 program is expected to open on Monday. These are forgivable loans available for small businesses to access to keep their operations afloat through the varying Coronavirus regulations, recession and sluggish recovery.
“The Paycheck Protection Program has successfully provided 5.2 million loans worth $525 billion to America’s small businesses, supporting more than 51 million jobs,” said Treasury Secretary Steven T. Mnuchin. “This updated guidance enhances the PPP’s targeted relief to small businesses most impacted by COVID-19. We are committed to implementing this round of PPP quickly to continue supporting American small businesses and their workers.”
Key PPP updates include:
- PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;
- PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
- The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations;
- The PPP provides greater flexibility for seasonal employees;
- Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and
- Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.
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;
- Has no more than 300 employees; and
- Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
You can read the full press release from the Treasury Secretary along with information for registration here.
The NY SBA Office is providing a PPP update this Monday January 11th at 1pm to provide us the latest news on the program. You can register for the program here.
Long Island Main Street Alliance will be holding a virtual seminar on PPP 2 forgivable loans next Friday January 14th at 1pm. Please contact us at firstname.lastname@example.org if you are interested in attending.