A new round of PPP loans became available on Monday, January 11, 2021, to select lenders and borrowers. These select lenders will only include community financial institutions and the businesses eligible to apply for a loan starting Monday are those seeking their first PPP loan.
Congress passed an additional amount of $284 billion to be allocated towards this round of PPP loans and does not anticipate it will run out. Of this $284 billion, $60 billion has been set aside for businesses that have not been able to access the process so far, and it focuses on companies with 10 or fewer employees or those in low-income areas.
Businesses seeking their second round of PPP loan can apply on Wednesday and the lending portal will be available for other eligible lenders and borrowers shortly thereafter. These loans are expected to take a longer time to process than the previous issued loans due to enhanced restrictions. While the forms to apply for a loan are not yet available, they should be soon.
For those businesses applying for their second round of loans, the maximum loan amount will be limited to $2 million. In addition, the second loan will be available to employers with 300 or fewer employees and applicants must prove their revenues declined at least 25% during one-quarter of the pandemic, compared to the previous year.
Any applicant who is applying for a loan of $150,000 or less, will need to validate they meet the revenue-reduction requirements at the time they apply for a loan and provide documentation of the revenue loss at a later date.
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