Paycheck Protection Program Loans Guidance
|Date:||Jan 13, 2021|
Presented by Kentucky Chamber of Commerce
As part of the latest Congressional pandemic relief bill, the Paycheck Protection Program (PPP) was renewed, and applications will re-open the week of January 11th.
On Wednesday, January 13 at 10:00 AM, join panelists, Brian Cromer of Stites & Harbison, Diane Kilner of MCM CPAs and Advisors, and John Ryan of Stock Yards Bank & Trust, for a discussion of what has changed for this new round of funding and how to make use of the program.
Before Wednesday, we also encourage you to check out the U.S. Chamber’s Guide to Small Business COVID-19 Emergency Loans.
Key PPP updates include:
- PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;
- PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
- The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations;
- The PPP provides greater flexibility for seasonal employees;
- Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and
- Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.
- A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
- 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.
The new guidance released includes:
- PPP Guidance from SBA Administrator Carranza on Accessing Capital for Minority, Underserved, Veteran, and Women-owned Business Concerns;
- Interim Final Rule on Paycheck Protection Program as Amended by Economic Aid Act; and
- Interim Final Rule on Second Draw PPP Loans.
Find the list of PPP lenders, download the application form, and learn more by visiting the U.S. Small Business Administration website: sba.gov/ppp.