NEW: The just-enacted PPP Extension Act of 2021 gives employers a two-month extension to apply for both Round One and Round Two draws on PPP loans. You now have until May 31 to submit an application.
Recently, the American Rescue Plan Act had expanded the program but not the timetable. This latest development changes that.
If you’re looking to take advantage of the newest round of Paycheck Protection Program (PPP) loans, the time is now!
The Small Business Administration has started taking applications for the recently re-opened First Draw Loans (Jan. 11, 2021), as well as the new Second Draw Loans (Jan. 13, 2021).
Here’s what you need to know to take advantage.
Is your business eligible for a PPP loan this time?
Employers that previously received PPP loans can apply for a second one with the same general terms.
The maximum draw for the loan this time? 2.4 times average monthly 2019 or 2020 payroll costs, up to $2 million.
Your business is eligible if you:
- got a First Draw PPP Loan and will or have used the full amount for authorized purposes
- don’t have more than 300 employees, and
- demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
