Our deadline for PPP loans is April 30, 2021.
PAYCHECK PROTECTION PROGRAM FIRST DRAW LOANS: SBA is reopening the Paycheck Protection Program (PPP) for First Draw Loans the week of January 11, 2021. First Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, and certain supplier costs and expenses for operations.
Who Can Apply: Eligible small entities, that together with their affiliates (if applicable), have 500 or fewer employees—including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors—can apply. Entities with more than 500 employees in certain industries that meet SBA’s alternative size standard or SBA’s size standards for those particular industries can also apply.
Full Forgiveness Terms: First Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:
- Employee and compensation levels are maintained
- The loan proceeds are spent on payroll costs and other eligible expenses
- At least 60 percent of the proceeds are spent on payroll costs.
SECOND DRAW LOANS:
- Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
- Has no more than 300 employees; and
- Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
* Lender may require additional information
SOLE PROPRIETORS, INDEPENDENT CONTRACTORS, AND SELF-EMPLOYED INDIVIDUALS:
- SBA has revised its applications and rules regarding businesses that file IRS Form 1040 Schedule C:
- “Income” now encompasses borrower’s net income and gross income to account for fixed and other business expenses. The revised definition of income allows revisions to the loan amount calculation.
- SBA Form 2483-C or Form 2483-SD-C: Only for Schedule C filers using gross income
- SBA Form 2483 or Form 2483-SD: If using net income to calculate loan amount or if using Schedule F (either gross or net)
