PPP 2.0 – Additional Relief for Small Businesses – Take 1

Brian WebbNo CommentsBrian Webb, Business, Press Releases

We are aware that our members and communities are encountering continued economic difficulties related to the COVID-19 pandemic. We feel so fortunate to have been able to assist so many businesses this last year. It is our priority to keep you informed of the options available for your business and how we can help you along the way. The United States Small Business Administration’s (SBA) Paycheck Protection Program (PPP) is currently in the process of being allocated new funding for a second round of applications. This allows businesses to pay payroll costs, including benefits. Additionally, this program can also provide relief with interest payments on mortgages, rent and utilities, and other operational expenses now included in this second round. With this new round of funding, the criteria for eligibility has changed:

  • Business must have less than 300 employees.
  • Maximum loan amount not to exceed $2,000,000.
  • Business income (Gross Receipts) must have declined by 25% or more in any quarter of 2020 compared to that same quarter in 2019.
    • This loss will be measured by a standard calendar quarter (Jan-Mar, Apr-June, July-Sept, Oct-Dec) and not just any period of three consecutive months.
    • The guidance on how we will determine this has not been released by the SBA; however, we believe it will be by using borrower prepared financial statements (a Profit and Loss Statement or sales tax reports sent to the state) for the period you elect to use. So start gathering this information now.
  • Business must have started prior to February 15, 2020.

Although some sample drafts of the application have begun to surface online, the SBA has not yet released its final application requirements. Guidance from the SBA, including information on when they will begin accepting new applications, should be available in the coming days.

Please contact BRIAN WEBB LEGAL if you need any assistance…no matter where you might live. We have preferred lenders and accountants we recommend and are glad to share them with you. Call us at 208-331-9393.

We will continue to keep you updated as additional information becomes available, including specific details on when applications will be accepted and how and where you can apply.