How do you get your Paycheck Protection Program Second Draw Loan?
The rules are out now and here are the top 10 rules that you should know:
- Last day to apply & receive a new PPP is March 31, 2021;
- To qualify, you must use or will use full amount of your First Draw PPP loan on or before disbursement of second loan;
- SBA may forgive up to the full principal loan amount;
- Interest rate is 1%;
- Maturity is 5 years;
- Borrower must have 300 or fewer employees;
- Borrower must have experienced a revenue reduction of 25% or greater in 2020 relative to 2019 (quarterly comparison);
- When comparing 2020 relative to 2019, any forgiveness amount of a First Draw PPP Loan that a borrower received in calendar year 2020 is excluded from a borrower's gross receipts (not disqualified from the second loan because of the first one);
- Each hotel, restaurant, or news organization with a location owned by a parent business in a separate legal business entity and employing not more than 300 employees is permitted to apply for a separate PPP loan; and
- Maximum loan amount = 2.5 months of the borrower's average monthly payroll costs.
When are you submitting your application?
