PPP Loans Update: First and Second Time Borrowing

January 11, 2021

Good news for small business owners, the Paycheck Protection Program (PPP) is re-opening the week of January 11 for another round of coronavirus relief funding.

[divider height=”30″ style=”default” line=”default” themecolor=”1″]

PPP loans have been a saving grace to many small businesses, non-profits, and others. Below is key information about both rounds of PPP loans. Borrowers may begin applying the week of January 11, 2021. Please reach out to us with any questions you may have.

First Time PPP Borrowers (first draw)		Second Time PPP Borrowers (second draw)
Loan Amount: Up to $10 million Calculated at 2.5x average monthly payroll Eligibility Generally businesses with 500 or fewer employees that are eligible for other SBA 7(a) loans Sole proprietors, independent contractors, and eligible self-employed individuals New types of business: -Certain news organizations -Certain housing cooperatives -501(c)(6) organizations Covered Period Borrower can choose a covered period that is between 8 and 24 weeks Covered period for all existing PPP loans extended through March 31, 2021 Most existing rules are expected to continue for 1st draw		Loan Amount: Up to $2 million Calculated at 2.5x average monthly payroll Eligibility Maximum employee count is 300 employees, in general Must show a revenue reduction of at least 25% compared to 2019 (or applicable quarters in 2020) Restaurants, hotels, etc., (NAIC Code 72) at 3.5x average monthly payroll costs Seasonal = 12 week period of February 15, 2019 through February 15, 2020 Can use either 2019 payroll or 12 months prior to application Covered Period Borrower can choose a covered period that is between 8 and 24 weeks Covered period for all PPP loans extended through March 31, 2021
Data from CPA2Biz

First Time PPP Borrowers (first draw)

Second Time PPP Borrowers (second draw)

Loan Amount: Up to $10 million

Calculated at 2.5x average monthly payroll

Eligibility

Generally businesses with 500 or fewer employees that are eligible for other SBA 7(a) loans
Sole proprietors, independent contractors, and eligible self-employed individuals
New types of business:

-Certain news organizations

-Certain housing cooperatives

-501(c)(6) organizations

Covered Period

Borrower can choose a covered period that is between 8 and 24 weeks
Covered period for all existing PPP loans extended through March 31, 2021

Most existing rules are expected to continue for 1st draw

Loan Amount: Up to $2 million

Calculated at 2.5x average monthly payroll

Eligibility

Maximum employee count is 300 employees, in general
Must show a revenue reduction of at least 25% compared to 2019 (or applicable quarters in 2020)
Restaurants, hotels, etc., (NAIC Code 72) at 3.5x average monthly payroll costs
Seasonal = 12 week period of February 15, 2019 through February 15, 2020
Can use either 2019 payroll or 12 months prior to application

Covered Period

Borrower can choose a covered period that is between 8 and 24 weeks
Covered period for all PPP loans extended through March 31, 2021

Data from CPA2Biz

[button title=”CONTACT US” link=”https://www.bcscpa.com/contact-us/” target=”_blank” align=”center” icon=”” icon_position=”” color=”#18314f” font_color=”#ffffff” size=”2″ full_width=”” class=”” download=”” rel=”” onclick=””]

PPP Loans Update: First and Second Time Borrowing

Good news for small business owners, the Paycheck Protection Program (PPP) is re-opening the week of January 11 for another round of coronavirus relief funding.

Loan Amount: Up to $10 million

Eligibility

Covered Period

Most existing rules are expected to continue for 1st draw

Loan Amount: Up to $2 million

Eligibility

Covered Period

Quick Links

Johnson City

Kingsport

Greeneville

Boone