Second Round of PPP Loans Available
On Dec 27, 2020, Congress passed a $900 billion COVID relief stimulus package making churches, nonprofits and businesses eligible to apply for a second round of Paycheck Protection Plan [PPP] Loans. Funding is available to the following groups with these parameters.
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Businesses, nonprofits and churches who didn’t apply in 2020:
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Your business has less than 500 full-time, part-time, or seasonal employees.
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Your business was operational before February 15, 2020 and remains operational.
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Business, nonprofits and churches who received a loan in 2020:
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Must have fewer than 300 employees
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Can demonstrate that they have or will use their first loan in full
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Experienced a 25% loss in revenue in at least one quarter compared to the previous year
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Borrowers who returned any portion of their previous PPP Loan may apply again
Just like the first round, forgivable use of the loans include costs for payroll, rent, utilities and mortgage interest. Borrowers are eligible to receive 2.5 times their average monthly payroll during the prior year, with a $2 million maximum
The legislation also sets in place a simplified forgiveness process for those who received a loan of $150K or less. This simplified process is a one page affirmation of the number of your employees and payroll costs. Auxilio is already working on forgiveness applications for our clients who received a loan. If you are interested in applying for a first-time or second PPP loan, contact your Auxilio Partner Strategist to learn more.
Additional articles on PPP Loans round two:
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Journal of Accountancy - https://www.journalofaccountancy.com/news/2021/jan/sba-treasury-issue-ppp2-guidance.html