Now that President Trump has signed the economic stimulus bill into law, companies whose survival depends on a new round of Paycheck Protection Program (PPP) funding should start preparing to file their applications soon.
There are some critical changes in the PPP that are designed to ensure truly small businesses and companies owned by minorities or located in economically disadvantaged areas are better served this time around. The package appropriates $284.5 billion in new funds for the SBA to guarantee first and second round loans from the popular program.
The second round of the PPP sets aside at least $15 billion for first loans issued to truly small businesses with 10 or fewer employees. The program allows for first loans of $250,000 or less issued to entities in low- or moderate-income areas. The new round of the PPP also sets aside at least $25 billion for second loans to entities that meet eligibility criteria.
To qualify for a second PPP loan, organizations would have to:
· Employ 300 or fewer workers (instead of the previous 500-employee threshold).
· Demonstrate at least a 25 per cent reduction in gross revenue during a quarter in 2020 compared with the same period in 2019, with some exceptions.
· Exhaust their first loan before receiving a second one.
Most eligible borrowers could receive second loans for as much as $2 million or 2.5 times their average monthly payroll costs, whichever is less. Restaurants and hospitality businesses could receive the lesser of $2 million or 3.5 times their average monthly payroll costs.
Biz2Credit is now taking pre-applications from small businesses
“If your business has been harmed by the coronavirus pandemic, you can get financial assistance from lenders approved by the government,” said Rohit Arora, CEO of Biz2Credit. “Biz2Credit is offering support for companies that need since we are one of the few fintech companies approved for the program.
“We are ready to help small businesses get PPP funding as quickly as possible when the applications for the second PPP round open. Even if a firm was denied loan during the first round of the program or secured financing from another source during the PPP’s first round, we’re ready to provide assistance.”
Biz2Credit has already begun taking ‘pre-applications’ for the new round of the PPP. Small business owners can fill out an application online now, and Biz2Credit will be ready to submit to the SBA as soon as the program opens.
“This means faster approval times and confidence that your business has the best shot of receiving funds from the program again,” Mr. Arora added.
“Companies that already got a PPP loan earlier this year may now apply for a second draw, if they qualify, and businesses that didn’t receive funding during the initial PPP can now apply for a first draw loan.”
Biz2Credit has continuously worked to simplify the application process for small businesses since PPP was first introduced.
“Our online PPP application is tailor-made to the specifications of the SBA and the Treasury Department and is adaptable as regulations change,” Mr. Arora said. “It has become a trusted platform for small business borrowers, their CPA advisors, and lending institutions.”
Biz2Credit has established a COVID-19 Resource Hub for business owners who have questions about the PPP or other financial relief. To begin the online PPP application process, click here.
