The SBA and the Treasury have announced that they will re-open applications for PPP Loans. PPP loans are low-interest loans provided through SBA-approved lenders and can only be used for payroll and other approved expenses. PPP loans that are used properly may be forgiven and are not considered taxable income.
At first, PPP funds will only be available to first-time borrowers. Eligible second-time applicants will be able to apply on Wednesday, January 13th. In the first two days, minority-owned businesses will be given priority in processing and acceptance.
In order to qualify for a second loan, businesses will need to have 300 employees or less, and also demonstrate a loss of at least 25% in gross receipts. This loss is calculated by comparing a quarter from 2020 with the identical quarter from 2019. PPP loans given in this round of funding are capped at $2 million or less.
All previous rounds of PPP funding have been claimed very quickly. If you are interested in receiving a PPP loan for your business, be sure to submit your application ASAP.
If you have already received a PPP loan and you need help navigating the process for PPP loan forgiveness, we can help.