A second round of government PPP Loans are expected to be finalized soon, and the application process could start as early as this week, according to Forbes.
The first round of PPP loans distributed in April of 2020 were designed to help businesses remain afloat during uncertain times caused by the pandemic.
Even though pandemic effects are starting to diminish with vaccine rollouts underway, businesses are still struggling. This round of PPP funds are geared towards small businesses who experienced sales declines in 2020 and the allowance for spending on a wider array of expenses.
- Larger portions of funds can be spent on rent, mortgages, utilities and other expenses -- more so than PPP1 loans
- Many companies can apply for PPP2, including those who previously received PPP1 loans
- Eligible applicants must show a 25 percent decrease in revenue in a given quarter in 2020
- Companies must have used or have a plan to use all funds from PPP1 before applying for PPP2
- Hotels and restaurants may qualify for funds that are 3.5 times its payroll
We’ve successfully helped clients throughout the entire life cycle of PPP1 by using our strong and trusted banking relationships.
For more information on the program, the full Forbes article is below: