The latest round of the Paycheck Protection Program should fully open today, with participation from lenders of all shapes and sizes. Round 2 of the Paycheck Protection Program looks much different than the April 2020 version that was set up rapidly – almost in triage fashion, with limited and rapidly evolving guidance.
Serving Broader Range of Businesses & Non-Profits
There is new eligibility for first-time applicants such as:
Chambers of Commerce
Local newspapers (subject to eligibility requirements)
In addition, some borrowers who received a PPP loan in the first round may be eligible for a second draw PPP loan. If your business experienced a revenue decline of 25 percent or more in any quarter of 2020 (compared to the same quarter in 2019), you may be eligible for a second-draw PPP loan.
Lenders have Latitude Around Rules and Processes
PPP applicants may encounter lenders who require documentation or impose restrictions that aren’t called for in SBA regulations, if this happens to you, please email us so that we can advise you with regards to your options.
Greater Application Scrutiny
More fraud protections have been put in place to weed out ineligible companies and scammers. The Small Business Administration is committed to random review of some loan applications and forgiveness requests.
Group Health Plan Expenses
The updated PPP Program clarifies that group health plan expenses can be considered qualified wages even when no other wages are paid to the employee, which is consistent with IRS guidance. An example of this is health plans offered to furloughed employees.
The credit is available to certain government instrumentalities, including colleges, universities, organizations providing medical or hospital care, and certain organizations chartered by Congress.