2nd Round PPP Loans, It's Not Too Late.
Applications are being accepted through May 31, 2021 for the second round of PPP loans.
Along with the eligible expenses of payroll, rent, mortgage interest, and utilities of the first round, the second round can also be used to fund operations costs, property damage caused by looting or vandalism in 2020, supplier costs, and worker protection items related to Covid-19.
The amount of the PPP loan is up to 2.5 times the average monthly 2019 or 2020 payroll expenses up to $2 million. In the Accommodation and Food Services industry borrowers can borrow up to 3.5 times the average monthly 2019 or 2020 payroll expenses up to $2 million.
A business is typically eligible for the second round if it received a PPP loan in the first round and has used or will use the entire amount only for allowed uses. Businesses can only have up to 300 employees to qualify. The exception is hotels and restaurants which may have up to 500 employees. The business's gross receipts must be 25% lower in any quarter in 2020 compared to the same quarter in 2019 to qualify for a second loan.
The terms of the loan are the same regardless of lender or borrower. Applying for a second loan can be easier than applying for the first. Using the same financial institution you used for your first PPP loan will save you a lot of time. They will have all your paperwork which will expedite the process. Some financial institutions will also prioritize customers with whom they have an existing business relationship. If you have any questions regarding your application or loan status, ask your lender directly. Just be sure to apply by May 31st, 2021!
Starting a NEW business or know someone that could use our help? Call your friendly neighborhood attorney today.
With the right help, you are more likely to succeed. The attorneys at Shoffner & Associates will be happy to help you.
Amanda Y. Cordes, Esq.
Shoffner & Associates
Counselors to Small Business and Families.
Give Amanda a call at (617) 369-0111
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