Sole proprietors, independent contractors, and eligible self-employed individuals.Businesses, some nonprofit organizations, self-employed workers and independent contractors.Companies with fewer than 300 employees who have already used or will use the full amount of money granted to them in their initial round of PPP.If your eligible business never obtained a PPP loan during the original program, the re-opened program means you can now apply for the first time, but are subject to the terms of the initial program. For eligible businesses that currently have a PPP loan or have had one previously who need additional support, the updated program allows some businesses obtain another PPP loan, called a “ PPP second draw.” Additionally, the updated lending program changes rules for existing PPP loans, for new PPP loans, and PPP second draws in terms of eligibility, allowable expenses, forgiveness, and more. Importantly, the re-started program allows new PPP loan requests from eligible businesses that didn’t obtain a loan in the initial round. PPP has been reopened with a fresh $284 billion in available funding. The lender may require additional documentation. No additional documentation will be required for second draw loans if the applicant used the full calendar year 2019 for the first draw and the second draw loan lender is the same as the first draw.Payroll documentation required in the first draw will be the same for second draw loans.Loans under $150,000 do not require this documentation at the time of application, but they will be required for forgiveness.For loans above $150,000, applicants must submit documentation to substantiate a revenue reduction of 25% or more (tax forms, financial statements, bank statements).These businesses will also be able to apply for a separate loan for each location, given each individual location is a separate legal entity.Restaurants, hotels, and other businesses categorized under NAICS code 72, will be eligible to receive 3.5x their average payroll.Payroll can be calculated 3 ways: (1) 2019 calendar year, (2) 2020 calendar year, (3) past 12 months.Revenue reduction can also be the full calendar year of 2020 vs 2019. For example: Q2 2020 (April, May, June 2020 Revenue) vs Q2 2019 (April, May, June 2019 Revenue) must have decreased 25% Year Over Year. Revenue needs to have decreased at least 25% in 2020 compared to the same quarter in 2019.Applicants must have utilized the full amount of their initial draw PPP loan on or before the expected date of the second draw PPP loan is disbursed.Maximum loan sizes for this round are $2 million.Public companies are ineligible to receive PPP funds.Program will be open to new borrowers on January 11, and for 2nd draw borrowers on January 13.The application for Second Draw Loans has not yet been released.Below are some notable takeaways of what to expect: Second Draw Loans are loans that will be made to borrowers that already received loans in the first round of PPP loans last year. The full text of the guidelines can be found here. Small Business Administration released initial details and guidelines for the updated Paycheck Protection Program (PPP) Second Draw Loans. This means our service was especially helpful for the smallest of small businesses - many of whom were not getting any attention from their own banks. Our process is indiscriminate of loan size and in round 1 over 90% of the borrowers whose loans were funded after using our service requested loans of less than $50,000. We have again teamed up with Lendio, with whom we helped facilitate over 10,000 successfully funded PPP loans in the first round. In order to assure a smooth process for your application submission, please make sure to have handy a payroll statement or similar documentation (NOT a bank statement) from the pay period that covered February 15, 2020, in order to establish you were in operation and had employees on that date. If you’re a small business or sole proprietor (1099) and are interested in beginning your application process, follow the appropriate link below. UPDATED 1/21/21:As of January 11, 2021, PPP applications are open again. Existing borrowers may be eligible for PPP Loan Forgiveness. SBA.COM® PAYCHECK PROTECTION PROGRAM (PPP) INFORMATION SHEET: UPDATE 09/10/21: The Paycheck Protection Program (PPP) ended on May 31, 2021.
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