Starting Friday, the second round of Payroll Protection Financing will be available for local businesses.
More businesses will be eligible for Paycheck Protection Program loans, and the program has been extended to March 31, 2021. Congress allocated $284 billion into the new program, which has expanded to include payroll costs, group health insurance benefits — including life insurance, disability benefits, vision and dental insurance — and other PPE purchases.
To be eligible as a first-time recipient, the business must have fewer than 500 full-time, part-time or seasonal employees, was operational before Feb. 15, 2020 and remains operational.
Second-time loan recipients must have fewer than 300 full-time, part-time or seasonal employees per location. Recipients must also be able to demonstrate a reduction in revenue of 25 percent or more in the first, second or third quarter of 2020 compared to 2019. They must also demonstrate the business was operational before Feb. 15, 2020 and remains operational and the recipient used or will use the full amount of the first-draw PPP.
Businesses eligible for first-time or second-time loan recipients include sole proprietors, independent contractors, self-employed individuals, faith-based organizations with fewer than 150 employees, certain nonprofits and seasonal employers that fit the bill’s definition.
The interest rates on PPP loans are non-compounding and non-adjustable, and forgiven PPP loans are not taxable, although forgiven expenses are tax-deductible. The application for loan forgiveness under $150,000 will also have a new, simpler application page.
Borrowers will be allowed to choose a covered period between eight and 24 weeks, and some PPP funding will be set aside for community lenders and businesses that operate in low-income areas.
More information can be found at metroiba.org.
