It’s going to take us many weeks to digest everything in the Coronavirus Relief & Omnibus Agreement that the President signed Sunday night. PPP Round 2 is upon us!
PPP Loans for 1st time borrowers:
-Generally 500 or fewer employees
-Sole proprietors, independent contractors, and eligible self-employed individuals.
-Any business that averages less than 500 employees per physical location that has a NAICS code starting with 72
-Nonprofits, including churches
-All loans are subject to review by SBA
-1% interest rate for small businesses
-If no forgiveness, payments are deferred 10 months after the covered period
- Before June 5th – 2 years
- After June 5th – 5 years
2nd PPP Loans for hardest hit borrowers:
-25-30% gross receipts decline in any calendar quarter of 2020 compared to same quarter in 2019
-300 employees or fewer
-Based on the calendar quarter.
-May be a tiered system where certain loan amounts will only require self-certification and others will have documentation requirements.
-All will be subject to review by SBA, random for smaller.