Small businesses can start applying for the latest round of federal Payroll Protection Program.
PPP loans available for businesses that did not get the grant in the first round, and the application process began on Jan. 11. Also, businesses that got PPP in the first round can apply for the Second Draw can begin applying on Jan. 13.
According to the Newton Needham Regional Chamber: “As with the first two rounds of the PPP, applications must be submitted online at banks and other SBA-approved lenders. Loans are calculated using a company’s payroll expenses; businesses can use either their 2019 or 2020 payroll to compute how much they can ask for.”
The loans can be forgiven if 60 percent of the funds are used for payroll. In the first round, the loans could only be used for payroll and rent, but the list has been expanded and now includes employee health benefits, mortgage interest, utilities and expenses that are essential to business operations, according to the Newton Needham Chamber.
According to the Watertown Savings Bank PPP announcement, certain industries can apply for larger loan amounts, including restaurants.
Additional industries and sectors have been added to the eligible list, according to Watertown Savings Bank, including:
- 501(c)(6) organizations (Chambers of Commerce, Trade Associations, Real Estate Boards, Professional Associations, Boards of Trade, Business Leagues)
- Housing Cooperatives
- Newspapers
- Broadcasters
- Radio Stations
The latest legislation set aside $15 billion exclusively for customers of community banks.
The Newton Needham Regional Chamber included the following information in its PPP write up in its daily newsletter:
Two new application forms for the new round of PPP loans are out.
The applications are based on whether you are applying for your first (aka “First Draw”) or second (“Second Draw”) PPP loan.
- Form 2483 – First Draw Borrower Application (Updated 1/8/21)
- Form 2483-SD – Second Draw Borrower Application (Released 1/8/21)
We’re still waiting for the SBA to announce when the PPP will open to all participating lenders and borrowers. But judging by the 70 people who signed up for our Jan. 22 PPP webinar in just a few hours Monday, interest is high.
Find out more information at PPP and other programs offered by the U.S. Small Business Association at https://www.sba.gov/funding-programs/loans/coronavirus-relief-options