PPP Reopens the Week of January 11

The Paycheck Protection Program is reopening for applications again today. Please review the important information below outlining updates to the Paycheck Protection Program.

If you would like BakerStarrett’s assistance determining eligibility and applying for a PPP loan (this is a billable service), please fill out this questionnaire: https://airtable.com/shr2qMZaNONmYPN6u 

The new COVID relief bill that passed Congress at the end of 2020 restarted the Paycheck Protection Program. As a reminder, the PPP program allows eligible small businesses to apply for a loan to maintain payroll costs and support ongoing operations during this time of economic uncertainty. The loan may then be forgiven if the funds are used for their intended purposes.

PPP loans are available for a couple of categories of small businesses:

  1. Businesses that did not previously apply for a PPP loan:
    1. The Small Business Administration calls these “First Draw” loans
    2. Loans are based upon wages paid and net earnings from self employment
    3. A helpful overview of this program can be found here: https://home.treasury.gov/system/files/136/Top-line-Overview-of-First-Draw-PPP.pdf 
  2. Businesses that previously applied for a PPP loan:
    1. A “second draw” loan is available to small businesses that
      1. Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020
      2. Have fewer than 300 employees
      3. Have used/will use their “first draw” loan before receiving “second draw” loan (likely issued in the Spring/Summer of 2020)
    2. A helpful overview of the second draw program can be found here: https://home.treasury.gov/system/files/136/Top-line-Overview-of-Second-Draw-PPP.pdf 

We look forward to working with you! 

*We have used the term “small business” in this post, but please note that the PPP loan program is available to eligible small entities which includes small businesses, nonprofits, veterans organizations, tribal concerns, and self-employed individuals.

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