Second wave of Paycheck Protection Program begins
BOWLING GREEN, Ky. (WBKO) -The second Paycheck Protection Program window has opened, and starting January 13 you can apply for the program.
Second-time borrowers of the program must demonstrate at least a 25 percent reduction in gross receipts between comparable quarters in 2019 and 2020. You can use 2020 tax returns to demonstrate this.
If you apply for PPP over the next six months, you can use the funds for things like payroll, rent, mortgage, and utilities.
“There are certain requirements around paying the employees using the loan for certain expenses, like rent or utilities and retaining your employees. So make sure you understand all of the requirements for the loan to be forgiven before you actually take it out. I will add though, that even if for some reason your loan isn’t forgiven --in the end, the interest rate is actually pretty low. So it still could be a great opportunity for our small businesses to get access to credit,” said Jeanne Fisher, CFP, Managing Director Strategic Retirement Partners.
With the program, you can get up to 2 and a half times the monthly average payroll as a forgivable loan.
“So the PPP loan can grant you up to two and a half times your average payroll. It can be forgiven if you meet certain requirements. Now, because restaurants and the hospitality industry, in general, has been more affected, they may actually qualify for three and a half times their average payroll,” Fisher added.
Non-profits applying for PPP will have some different exceptions so make sure to read the fine print.
“Non-profits are eligible to receive this round, and they were eligible to receive the first round, but there are some different exceptions in there. Namely, that they did need to actually use the full funds and they can’t be funded by lobbyists or anything that could have created conflicts of interest. So if you’re a nonprofit, you may be eligible, just check the fine print,” said Fisher.
If you are interested in applying for PPP you need to go to your local lender that is approved by the SBA, which would be most of our local banks.
For more information about PPP click here.
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