We are happy to report that the SBA fully re-opened the Paycheck Protection Program (PPP) loan portal to all participating PPP lenders on January 19, 2021. First draw and second draw PPP loan applications may be submitted to the SBA.
According to the SBA, first draw PPP loans are for those borrowers who have not received a PPP loan before August 8, 2020.
Second draw PPP loans are for eligible small businesses with 300 employees or less, that previously received a first draw PPP loan and will use or have used the full amount only for authorized uses, and that can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020. The maximum amount of a Second Draw PPP loan is $2 million.
Now that the PPP has resumed, borrowers applying for a first draw or second draw PPP loan will have until March 31, 2021, to submit an application.
For a copy of the PPP first draw borrower application form, updated 1/8/2021, click here.
For a copy of the PPP second draw borrower application form, click here.
On January 11, 2021, we provided an overview of the eligibility requirements for the PPP second draw loan as well as details regarding the revenue reduction requirement, payroll cost calculation, and documentation requirements. To read this article, please click here.
First draw and second draw PPP loan forgiveness is available for eligible borrowers. Some borrowers may qualify for full loan forgiveness. To review the forgiveness terms, click here to visit the PPP loan forgiveness page on the SBA website.
To find a lender, the SBA is providing a free online tool called Lender Match that connects small businesses with SBA-approved lenders. To use Lender Match, click here.
You may also find eligible PPP lenders using a map. To access this free online tool, click here.
For more information on the SBA Paycheck Protection Program, click here.
Should you have questions about this topic, or any other topics related to your personal or business situation, please contact us at any time.
DISCLAIMER: The WM Daily Update COVID-19, COVID-19 Business Resources and COVID-19 Client News Alerts and other related communications are intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.