![]() ![]() To qualify, companies must meet the following criteria: Ultimately, this means the second-draw loans are much more targeted. The second-draw PPP’s purpose is to offer financial assistance to businesses that were hit especially hard by COVID-19 disruptions. What businesses are eligible for second-draw PPP Here are six things companies need to know about second-draw PPP loans. The terms and restrictions for second-draw PPP loans are not the same as for first-time PPP loans, so businesses should be well aware of the changes before applying. Applications for second-draw PPP loans will be open until May 31, 2021, or until the money allocated for the program runs out. In 2021, many of those same businesses now have the opportunity to apply for a forgivable second-draw PPP loan, which can provide more short-term assistance.įollowing new coronavirus stimulus legislation passed in December 2020, the Small Business Administration (SBA) began accepting applications for second-draw PPP loans on January 13, 2021. businesses as a way to help them make it through the coronavirus crisis. ![]() In 2020, the federal government’s Paycheck Protection Program (PPP) provided forgivable loans to more than 5 million U.S. For more information on other grants, loans and programs available to small businesses, please see these articles:ģ0+ Grants, Loans and Programs to Benefit Your Small BusinessĪ Practical Guide to Funding Your Small Business with Business Loansįor more on stimulus aid still available, see our main story here. PPP applications are no longer being accepted. Updated 6/1/21: The PPP loan application portal is closed. The extent to which you are eligible for forgiveness depends on theįorgiveness rules and regulations issued by the SBA.Following new coronavirus stimulus legislation passed in December 2020, the SBA began accepting applications for second-draw PPP loans on January 13, 2021. Not have formal business expenses that you report on your Schedule C, you will be limited to having 60% of your Please note, the SBA has limited loan forgiveness for applicants who are self-employed. Requiring the disclosure of key individuals who own orĬontrol a legal entity (i.e., the beneficial owners) helps law enforcement investigate and prosecute these Legal entities can be abused to disguise involvement in terrorist financing, money laundering, taxĮvasion, corruption, fraud, and other financial crimes. Obtain, verify, and record in about the beneficial owners of legal entity customers at the time a new account is To help the government fight financial crime, Federal regulation requires certain financial institutions to Up to 3.5x monthly payroll costs for a second draw. If your business falls under NAICS code 72 (Accommodation and Food Services), you may qualify for PPP borrowers are eligible for up to 2.5x monthly payroll costs for their initial PPP loan, as well as any Loan forgiveness are subject to your ability to meet government-set eligibility requirements. There are no fees for applying for PPP or forgiveness. BlueAcorn does not guarantee that applications will be processed and submittedīefore PPP funds are no longer available. BlueAcorn may need additional information from you laterĪnd does not guarantee that it will be able to submit your application to the SBA based solely on the Qualified applications will be submitted to the SBA. Funds are limited, and may not be available at this time. Loan agreements will identify the appropriate lender to Small Business Administration ("SBA”) lenders. PPP loans are made by one or more approved Interest rates for the Paycheck Protection Program ("PPP') are at 1%. We have your information from the initial application, so the process is streamlined and easy. Amazing Support - Videos, Email and Chat Most loans under $150,000 will be able to apply for forgiveness in just about 5 minutes. ![]()
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