The U.S. Government passed a stimulus package that includes new funding for the Paycheck Protection Program (PPP) with the goal of helping small businesses that have been harder hit by COVID-related closures and restrictions.
You may be eligible to apply for a second PPP loan if you:
Are a business, certain type of non-profit organization, housing cooperative, veterans’’ organization, tribal business, self-employed individual, sole proprietor, independent contractor, or small agricultural co-operative;
Employee not more than 300 employees;
Have used or will use the full amount of your first PPP loan on eligible expenses and;
Demonstrate at least a 25% reduction in gross receipts in the first, second, third or fourth quarter of 2020 relative to the same 2019 quarter.
Businesses that are not eligible to apply include:
Entities in which certain federal officials or their spouses (refer to SBA rules), directly or indirectly, hold a controlling interest;
Entities that have permanently closed;
Entities involved in political and lobbying activities, as well as think tank entities, public policy or political strategy advocacy businesses;
Entities with certain relationships or affiliations with people or entities in the People’s Republic of China;
Registrants under the Foreign Agents Registration Act;
Entities that receive a grant under the Shuttered Venue Operator Grant program; and
Publicly traded companies.
Basic Loan Terms:
In general, borrowers may receive a loan amount of up to 2.5X the average monthly payroll costs in the one year prior to the loan or the calendar year 2019 or 2020, with a maximum loan amount of $2 million dollars.
Refer to SBA Rules and your financial institution on other applicable terms, conditions or limitations.