$284 Billion for Small Businesses
PPP Round 2.0
While the official rules and regulations have not yet been released, below are some high-level points regarding PPP Round 2.0.
- Applicants must have fewer than 300 employees.
- The business applicant must have revenue reduction of 25% or more between comparable quarters in 2019 and 2020.
- The SBA 7(a) loan guarantee is increased to 90% (until 2021-10-01); an excellent bank incentive to process loans for startup business loans.
- The SBA Express Loan is increased to $12 million cap (until 2021-10-01).
- First time applicants may apply for maximum of $2 million.
- Previous PPP loan recipients may apply for maximum $2 million.
- Have, or will have exhausted all proceeds from first PPP loan.
- Borrowers may choose their covered period (between 8 and 24 weeks)
- Proceeds may be used for broader range of operational expenses, e.g., inventory, supplier costs, HR services, etc.
- EIDL advances will not be included in the forgiveness calculation.
- The SBA must establish a one-page simplified forgiveness form by January 20, 2020.
- There will be a very simple Forgiveness Application for loans less than $150,000.
- The business must have been in operation before February 15, 2020.
- Borrowers with qualifying SBA-backed loans will receive an additional 3-months principal and interest payments.
- Underserved borrowers will receive up to 8-months principal and interest payments.
