Important information for the new Paycheck Protection Program

Important information for the new Paycheck Protection Program

  • Post published:December 30, 2020
  • Post category:News

On December 27, 2020, President Trump signed the Covid relief and government funding bill. The bill enacts the 2nd round of the PPP and a $600 stimulus check to Americans. As part of a $900 billion relief bill, Congress approved more than $284 billion in new PPP funding and extends the program through March 21, 2021. Once the SBA revises the program guidelines, PPP will re-open to existing and new borrowers. Its anticipated that the SBA will have the program open for PPP applications within 10 days.

The qualifying requirements are:
– Demonstrating at least a 25% reduction in gross receipts during a quarter in 2020 relative to the same quarter in 2019;
– Employing 300 or fewer employees;
– Having used or will use the full amount of their first PPP loan.

The PPP program will broaden the expenses covered with the PPP funds. These expenses include:
payroll costs, rent, utilities, mortgage interest, operational expenses, payments to suppliers, property damage.

Additionally, although not directly part of the PPP program, the relief bill designated $15 billion for the SBA to make grants to eligible live venues, performing arts organizations, museums, and similar organizations that demonstrate a 25% reduction in revenues.

As of 12/30/2020 applications are not open yet

Once the SBA finalizes their guidelines for this second round of relief, applications will be opened to the public. In the meantime, you can prepare for a new or 2nd PPP loan by gathering the following documentation to help your application process:
  • 2020 vs 2019 Quarterly comparison of Gross revenues (request the DF Qualification Spreadsheet);
  • 2019 Tax Returns- Corporate Tax Return or Schedule C of the 2019 IRS form 1040;
  • 2019 Bank Statements- February through December 
  • 2019 Payroll Summary- February through December

Click the links below for more information on the upcoming Paycheck Protection Program.