The latest stimulus package added to the popular PPP loan program. Watch to learn more:
PPP 2.0 Loan (And How to Qualify)
In case you didn’t know the latest stimulus bill allocated more money to the to the popular PPP loan program that was part of the Cares Act earlier in 2020.
And now we have PPP 2.
How do you qualify for a PPP 2 Loan?
So how do you qualify?
Well, if you’re a business and you can show that your sales revenue dropped 25% for any quarter in 2020 you pick whatever quarter was the worst compared to that same quarter in 2019.
That’s one step.
You also need to be a small business under 300 employees.
And even if you took a PPP one loan, you can still be eligible to make a second draw here, which is pretty exciting.
- Find the First Draw Paycheck Protection Program application here. (Effective March 18, 2021).
- Find the Second Draw Paycheck Protection Program application here. (Effective March 18, 2021).
How much is the PPP 2 loan?
You can get a loan up to $2 million.
You get 2.5 times your monthly payroll. That’s what the loan amount would be. Certain industries, like restaurants, can get 3.5 times their monthly payroll.
So what do you do if you think you could qualify? Contact your SBA lender or your tax advisor. Or contact us to learn more.
PPP Application Deadline Extended
President Biden has signed the PPP Extension Act of 2021. The new law extends the Paycheck Protection Program (PPP) application filing deadline from March 31, 2021 to May 31, 2021, thus providing potential PPP borrowers additional time to submit their applications.