How To Get A Ppp Loan

25 May, 2021

Here are the requirements to get a Second Draw PPP loan. If you have not received a Paycheck Protection Program PPP loan before First Draw PPP loans may be available to you.

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Over the course of roughly four months in 2020 the PPP distributed about 525 billion in forgivable loans to 52 million companies saving an estimated 50 million jobs according to the SBA.

How to get a ppp loan. You can apply for the new PPP loan if you are a sole proprietor Independent Contractor or self-employed. The CAA provides for two types of Round 3 PPP loans initial or first-draw loans up to 10 million for entities that have never received a PPP loan and second-draw loans up to 2 million for. Borrowers may be eligible for Paycheck Protection Program PPP loan forgiveness.

Received a First Draw loan. The PPP Loan was signed into law on March 27 2020. Hospitality and food services business with NAICS codes starting from 72 who have less than 300 employees per physical location.

There has been a tremendous amount of frustration by small business owners operating as sole proprietors and trying to obtain a Paycheck Protection Program PPP loan. Second draw PPP loans for businesses that obtained a PPP loan but need additional funding. Basically both first- and second-time PPP borrowers can get a loan of up to 25 times their average monthly payroll costs with a cap of 100000 per employee.

The process is the same as it is for Second Draw loans. Restaurants and hotels applying for their second PPP loan can get up to 35 times their average monthly payroll costs. On March 31 the SBA issued its guidance and sample application for the loan to be used by banks.

If you didnt get a First Draw loan now is the time. Additional funding for businesses that returned their first PPP loan or for certain businesses that did not get the full amount for which they qualified. Read more about new PPP loans included in the Economic Aid Act the stimulus bill here.

First-round PPP loan beneficiaries who lie under the following category can apply for the second programs.

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