Paycheck Protection Program (PPP) Updates
January 13th, 2021
The Small Business Administration (SBA) has released borrower loan applications for the second round of PPP funding. The application window opened Monday (1/11) for community financial institutions that serve minority- and women-owned businesses. The SBA has said it will open the application process to all lenders in “a few days”. That date is still TBD as of the writing of this message.
This second round of funding will be open to first time applicants for a maximum loan amount of $10 million. The loan amount may be up to 2.5 times your businesses average payroll, similar to calculation for the first round of funding.
For those businesses that have received a loan previously, you are eligible to receive another one up to $2 million if you meet certain requirements. A business will be eligible if it has 300 or fewer employees, has used or will use the full amount of the previous loan, and can show at least a 25% gross revenue decline for any 2020 quarter compared to the same one from 2019 (i.e. Q2 2020 gross revenue is 25% lower than Q2 2019).
If you have any questions or would like help through the calculation and/or application process, please reach out to your Siegfried Advisory Relationship Coordinator.