December 29, 2020: If your business is still struggling due to this pandemic, the good news is, there is a 2nd draw available to you from the PPP loan program. This program will work like the first loan program. There will be criteria that must be met in order to get this second draw:
- Less than 300 employees,
- 25% reduction in revenue in any one quarter in 2020 compared to 2019,
- Necessity of funds in order to keep employees employed and cover their payroll and other business costs,
- 8 or 24-week period of first PPP loan complete
Currently, completing and getting forgiveness of your first loan is not required.
Good news for those hard-hit industries with NAICS codes beginning with 72, you will get 3.5 times of your average monthly payroll rather than the 2.5 times you got the first time around. All others will get the same amount as the first round. If you are a business who got an early loan or calculated the initial loan amount wrong, this new Stimulus package is going to allow you to go back to get the increased amount.
These funds are to be used for the same expenses as the first round and do have additional expenses that can be covered: PPE for employees, facility upgrades for COVID, work from home software upgrades, property damage due to civil unrest, covered operations expenditures and supplier costs.
This loan will also be forgiven if you use the loan for payroll and other approved costs. 60% of the loan needs to be used for payroll costs, and the rest can be used for the other approved expenses.
We are expecting to be hearing from the SBA soon for these loans being available, so stay tuned. We also know they may continue to provide further guidance and will keep you updated as we know more. Please reach out to our Leadership Team if you have further questions or concerns.