What is a PPP loan?
An SBA loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis.
The President has signed a relief bill that includes $284 billion for Paycheck Protection Program (PPP) loans.
- Second draw is 2.5% average monthly 2019 or 2020 payroll costs up to 2 million.
- For borrowers in the Accommodation and Food Services sector the maximum loan amount for a Second Draw PPP Loan is 3.5x average monthly 2019 or 2020 payroll costs up to $2 million.
Important new information about PPP Round B:
- The program will be open for both first-time borrowers and borrowers looking for a second loan.
- have seen a 25% drop in revenue in any quarter of 2020 relative to the same quarter in 2019 and must have used the full amount of your first PPP loan.
- To be eligible for Round B (if you received a PPP loan in the previous round) you must have 300 or fewer employees,
Full Forgiveness Terms
- Second Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:
- Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan;
- The loan proceeds are spent on payroll costs and other eligible expenses; and
- At least 60 percent of the proceeds are spent on payroll costs.