Small Business Development Center hosts PPP second draw webinar

0
201

Contributed by the
Opelika Chamber of Commerce

The Small Business Development Center offered a free webinar on Friday, Jan. 15.

The webinar was recorded and is available at www.asbdc.ecenterdirect.com/events/8781.

Topics includes eligibility, loan amounts, the new application form, changes to covered expenses and how to maximize forgiveness.

PPP2 Timeline

• New stimulus bill passed overwhelmingly by both houses of Congress on Dec. 21, 2020

• Signed into law on Dec. 27

• Two interim/final rules issued Jan. 6, 2021

• Two borrower applications issued Jan. 8

• Certain funding opened Jan. 11. Most banks expected to be ready Jan. 18

• SBA is still to issue new guidance by way of updated FAQs and new, consolidated IFR

PPP2 Top-Line Overview

• $284 billion of new PPP loans

• For businesses in operation on Feb. 15, 2020

• Similar in many respects to first round

• Full Forgiveness if, during 8-24 week covered period

• FTE and compensation levels are maintained

• Spent on payroll costs and other eligible expenses

• At least 60% spent on payroll

• Other eligible expenses expanded to include

• Expenses to comply with health and safety (i.e. PPE)

• Expenditures to suppliers that are “essential” to current operations

• Software, cloud computing and accounting

• Targeted Eligibility for second draws

• Previously received a First Draw PPP Loan

• No more than 300 employees

• Twenty-five percent reduction in gross receipts between comparable quarters in 2019 and 2020

• A new chance for a first draw

•  If never received a First Draw PPP Loan

• No more than 500 employees

• Hotels and restaurants with fewer than 300 employees per physical location

• Maximum Loan Amount

• Two-and-a-half times average monthly 2019 or 2020 payroll

• Maximum of $2 million (vs. $10 million)

•  Controlled group cap $4 million (vs. $20 million)

• Employees limited to $100,000 annual pay

• Three-and-a-half times average monthly for Accommodation and Food Services

• How and When to Apply

• Available from Jan. 11, 2021, through March 31

• Through any existing participating lender (a list can be found on the SBA website)

Important Links

• SBA (First Draw PPP Loans): www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program/first-draw-ppp-loans

• SBA (Second Draw PPP Loans): www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program/second-draw-ppp-loans

• SBA (PPP Loan Forgiveness): www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program/ppp-loan-forgiveness

LEAVE A REPLY

Please enter your comment!
Please enter your name here