Four Things You Need to Know About PPP
The Paycheck Protection Program is open once again! As of January 11 2021, the SBA has reopened the Paycheck Protection Program and is accepting first draw applications. If you applied previously and didn’t receive the loan, or never applied, you can apply for the first draw.
The following entities affected by Coronavirus (COVID-19) may be eligible:
- Sole proprietors, independent contractors, and self-employed persons
- Any small business concern that meets SBA’s size standards (either the industry size standard or the alternative size standard)
- Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans organization, or tribal business concern (sec. 31(b)(2)(C) of the Small Business Act) with the greater of:
- 500 employees, or
- That meets the SBA industry size standard if more than 500
- Any business with a NAICS code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location
Eligible businesses may apply for a second draw as of January 13, 2021. A borrow is generally able to apply if you:
- 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
If you are planning to apply, here are four things you should know:
- Reach out to your lender to understand what systems are in place for their application process
- Make sure you have your taxes for at least 2018, but prove that you are still in business
- Sit down and write your story of how COVID-19 has effected your business. In the same vein, make sure you have data to back it up. For example, prove you sales have dropped due to the Pandemic. This written story may also help out when grant opportunities arise.
- When in doubt, apply anyway!