Starting Monday, small businesses seeking financial assistance to combat the coronavirus pandemic will be able to turn to the Check Payment Protection Program again. The loan program reopens on January 11, initially for first-time borrowers, and those who will have to follow for a second time on January 13.
Congress authorized the launch of the program with $ 284 billion in funding as part of its latest $ 900 billion coronavirus stimulus package approved in December.
Like the first iteration of the program, the grant will be in the form of forgivable loans, but there are key changes in issues such as eligibility for second-time applicants and forgivable expense rates. In addition, only certain types of community providers will accept applications during the first few days after the program reopens. This is what you need to know about relaunching.
Who can apply?
Eligible companies include companies, some non-profit organizations, self-employed workers and independent contractors.
Existing PPP borrowers can apply for a second loan. They must have 300 or fewer employees and can demonstrate that they have experienced a 25% reduction in gross revenue for a quarter in 2020 compared to the same quarter in 2019. Returned borrowers must have used or will use “the amount total of the initial PPP loan for authorized purposes before or before the expected disbursement date ”of the second loan, in accordance with the rules of the provisional program of the Small Business Administration and the Treasury.