2nd Ppp Loan

July 19, 2021

The second PPP loan is here to help US. How and When to Apply.

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In general borrowers may receive a loan amount of up to 25X the average monthly payroll costs in the one year prior to the loan or the calendar year entities in industries assigned to NAICS code 72 Accommodations and Food Services may receive second draw loans.

2nd ppp loan. What is a PPP Loan. The print version is at PPP Platform has been enabled to accept 2nd draw applications for Borrowers who submitted their first draw in calendar year 2021. Second Draw PPP Loan is 35x average monthly 2019 or 2020 payroll costs up to 2 million.

Small businesses access government-backed loans. This means like the first PPP loan the second round of PPP loans will also be fully forgivable if you follow the forgiveness guidelines. If the loan is not forgiven these loans would have an interest rate of 1 and a term of five years.

From January 13 2021 until March 31 2021 eligible small businesses will be able to apply for a second PPP loan to receive additional funds for expenses such as payroll supplier costs and personal protection equipment. SBA Form 3508 0121. Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan.

PPP now allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP loan with the same general loan terms as their First Draw PPP loan. Funds can also be used to pay for mortgage interest rent utilities worker protection costs related to COVID-19 uninsured property. The maximum loan amount for a Second Draw PPP Loan is 29166.

In general the maximum loan amount for a Second Draw PPP Loan is equal to the lesser of two and half months of the borrowers average monthly payroll costs or 2 million except as otherwise specified below. Thank you for sharing the link. Second Draw PPP loans can be used to help fund payroll costs including benefits.

Second Draw PPP loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement. AnswerFor a Second Draw PPP Loan amount of 150000 or less the borrower must provide documentation substantiating the reduction in gross receipts before or at the time the borrower seeks loan forgiveness or upon SBA request. To apply for forgiveness of your First or Second Draw Paycheck Protection Program PPP loan you the Borrower may use the loan forgiveness.

At least 60 of the loan must be spent on payroll and the rest spent on other eligible expenses. The loan proceeds are spent on payroll costs and other eligible expenses. The documentation must clearly identify both of the reference quarters if not using annual comparison must contain the gross receipts amounts for both quarters.

Borrowers can apply for a Second Draw PPP Loan until March 31 2021 through any existing SBA 7a lender or through any federally insured depository institution federally insured credit union eligible non-bank lender or Farm Credit System institution that is participating in PPP.

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