PPP Loans – Round Two
In late 2020, Congress approved a second round of Paycheck Protection Program (PPP) loans for small businesses. The rules are tighter this time around: In order to qualify, your business needs to show that revenue in at least one quarter of 2020 fell by 25% compared to the same quarter in 2019. You also need to have participated in the first round of PPP loans.
Loans are meant to cover 2.5 months of payroll expenses. As long as you spend 60% of the loan on payroll costs, you maintain your staffing levels and payroll, and you spend loan proceeds on eligible expenses, the loan will be forgiven. Businesses are eligible to borrow up to $2 million; if you borrow $150,000 or less, though, you’ll be able to go through a simplified forgiveness application.
The application deadline has been extended to May 31, 2021!
Someday soon, things will start getting back to normal. We want to help your business make it through the storm. Contact your local branch for assistance filling out an application.
PPP Loan Forgiveness
The first round of PPP loans were meant to cover payroll and certain other business costs through the end of 2020. If you spent that money on eligible expenses, the Small Business Administration will forgive your loan. But you must apply for forgiveness.
If you took out a PPP loan through our credit union and have not yet applied for forgiveness, get in touch with us so we can help you complete the necessary paperwork.