Once again, there’s much-needed relief available for small business owners impacted by the coronavirus pandemic. The new round of Paycheck Protection Program (PPP) loans launched on January 11, 2021 and applications are now open. Although the program is scheduled through May 2021, it’s suggested that business owners apply ASAP before funding runs out.
Like the previous round of PPP funding, this new round is designed to help small business owners stay afloat or rebuild in 2021. The application process has been simplified this time around. However, be sure to check with your lender as the process may vary.
$284 billion has been allocated to PPP and the program has been extended to May 31, 2021. Here are up-to-date details about this new round of funding for 2021.
The allowable uses of funds for this program have been expanded to assist small businesses in covering even more of their unexpected costs as a result of the pandemic. PPP loans can be used to cover the following:
To ensure a smooth application process, have the following available before you begin:
You must apply for PPP loan forgiveness through your PPP lender as forgiveness is not automatic.
When your covered period has ended and/or you’ve finished using your loan proceeds, contact your lender to begin the forgiveness process.
While each lender may have different forgiveness processes, these are based on the SBA’s guidance and should include the following:
There are many, many, questions from small business owners across America about how the latest relief bill will impact their need for funding. Forgiveness was the big concern of 2021 but a new question has arisen: Can I get a second PPP loan if requirements are met?
The answer is YES, with a few caveats.
New loans are capped at $2 million, compared to $10 million before. Applicants must have no more than 300 employees, instead of up to 500 must demonstrate at least a 25% percent drop in revenues in any quarter in 2020 compared to the same period in 2019. Restaurants and other hospitality businesses, can have no more than 300 employees in one location.
Let SmartBiz help you apply for a PPP loan. SmartBiz works with small business owners like you every day to help you apply for the funding you need. Since 2013, we’ve specialized in SBA (Small Business Administration) loans. The new round of the Paycheck Protection Program provides continued financial support to help eligible small businesses keep their employees and stay open safely during the COVID-19 pandemic.
Our streamlined PPP Loan application can help you fill out your application, upload required documents, and submit them to the bank quickly, whether this is your first or second PPP loan. Details include:
The SmartBiz Small Business Blog was created to share important information that impacts small businesses across America. In addition to extensive content on small business funding, SmartBiz blog posts cover marketing, credit scores, sales strategies, hiring, insurance, employee management, and more.
Here are recent articles with additional information about the Paycheck Protection Program.
*The availability of PPP loans remains subject to SBA guidance and other factors, including the amount of funding available to banks and the quantity of eligible applicants considered on a first-come, first-served basis. The information provided above is for educational purposes only. Please consult the SBA’s website for actual rules and the most current guidance.