Much has been made about the second round of the Payroll Protection Program, well it’s here! Eligible entity types have been made to include corporations, self-employed individuals, housing cooperatives, certain non-profit organizations, veterans’ organizations, tribal businesses, independent contractors and small agricultural co-operatives. Keep in mind there are a few stipulations to the new round of assistance loans.
- Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses
- Has no more than 300 employees; and
- Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020
If you meet these requirements, then make sure you contact the lender you got the first round from. Additionally, the new program aims to make it easier for smaller companies, low-income communities, and minority owned businesses.
To do so lawmakers have lowered the limit of employees from 500 to 300 per company and publicly traded companies are not allowed to apply. Furthermore, lawmakers have extended the ability to lend to smaller institutions like credit unions, community banks and farm credit institutions with assets of $1 Billion or less. This opens the market up to roughly 5000 more institutions to hopefully reach more businesses in need.