2nd Round PPP Loans!!!!
As of January 16, 2021, I have submitted 10 PPP Loans for the second round. Small Banks are the first ones the SBA is permitting to offer the loans. Since it is on a first-come, first-served basis until the money runs out speed is important!
I have also done PPP Loans for businesses that were squeezed out before.
Please call me at 856-665-2121
or
Text me at 856-745-4330
Ron Cappuccio
The Consolidated Appropriations Act (CAA) extends, liberalizes and expands the Paycheck Protection Program (PPP). Originally established by the CARES Act, the PPP expired on August 8, 2020. Now the CAA resurrects it. Here are the most important things small businesses should know from this section of the new law.
Second-Draw Loans
Under the new law, eligible small businesses can take out so-called “second draw” PPP loans. This provision targets smaller and harder-hit businesses with 300 or fewer employees that have used up, or have plans to use up, the full amount of their initial PPP loans. The maximum second-draw loan amount is $2 million. Only one second-draw loan can be taken out.
To be eligible, a business must demonstrate at least a 25% decline in gross receipts in the first, second or third quarter of 2020, compared to the corresponding 2019 quarter. For loan applications submitted after December 31, 2020, the business can use gross receipts for the fourth quarter of 2020, compared to gross receipts for the fourth quarter of 2019.
An eligible business can generally borrow up to 2.5 times its average monthly payroll costs in the year prior to the loan or in calendar year 2019. The limit is increased to 3.5 times payroll costs for businesses in the hard-hit accommodations and food service industries.
Important: The second round of the PPP, which includes the new second-draw opportunity, is funded with $284 billion. New loans can be made through March 31, 2021, or until the funding is exhausted.
Please call me at 856-665-2121
or
Text me at 856-745-4330
