The new year is finally here and also a new round of Federal Government COVID relief. Thankfully, there is help available for your small business.
Get ready for round two of the Paycheck Protection Program (PPP).
Smaller businesses that did not receive a PPP loan the first time around could begin to apply on Monday, Jan. 11. Those that did receive one of the original loans can apply for a second PPP loan beginning today, Wednesday, Jan. 13, provided they meet eligibility requirements.
“This round of the PPP continues to prioritize millions of Americans employed by small businesses by authorizing up to $284 billion toward job retention and certain other expenses through March 31, 2021, and by allowing certain existing PPP borrowers to apply for a Second Draw PPP Loan,” the Small Business Administration (SBA) explained.
So, what does this mean for your small business? Can you get another PPP loan? Are there restrictions? We’ll help answer all of these questions in our FAQ below.
Q. If I already have a PPP loan (PPP1), can my business get the new PPP loan (PPP2)?
A. To get a PPP2 loan from an approved SBA Lender when you already have received the PPP1 loan, you:
Q. How much of PPP2 funds must be spent on payroll?
A. Just as with the first round of PPP loans, payroll costs must account for at least 60% of total forgiveness.
Q. Is forgiveness available for PPP2 Loans?
A. Second Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8-to-24-week covered period following loan disbursement:
Q. Does the forgiveness application for the PPP1 loan need to be submitted prior to applying for the PPP2?
A. No. Borrowers can apply for the second PPP loan prior to submitting forgiveness applications for the first round of PPP.
Q. What is the maximum loan amount available?
A. PPP2 borrowing is capped at $2 million.
Q. Where I can find more information about PPP loans?
A. The U.S. Small Business Administration website can answer more of your PPP loan questions. Visit the SBA website to learn more.
You can apply for a Second Draw PPP Loan from Jan. 13, 2021, until March 31, 2021. Download the PPP Borrower Application Form now.
Founded in 1970, Allied is one of the nation's oldest and most experienced third-party administrators. Allied National is a 90 Degree Benefits Company, a subsidiary of Blue Cross Blue Shield of Alabama. As the small group benefit experts, Allied works with small business employers to provide unique and affordable group health benefits.
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Allied National is a 90 Degree Benefits Company, a subsidiary of Blue Cross Blue Shield of Alabama. Founded in 1970, Allied National is one of the nation's oldest and most experienced third-party administrators. We're the small group benefit experts working to provide unique and affordable group health benefits to small business employers.