Guidance from the Small Business Administration (SBA), the U.S. federal government & banks evolved over time. And a second round of PPP funding round surfaced in early January 2021. PPP Round Two ran out of funding in May 2021.
When is the deadline to apply for a PPP loan? Applications for Round 2 of PPP loans opened the week of January 11, 2021. The deadline for applying for a PPP loan was extended to May 31, 2021, but the SBA announced on May 5, 2021 that general funds for the program were depleted.
Unless Congress extends the program, PPP Round 2 applications will be accepted through May 31, 2021 or until the funds are exhausted. APPLY AS SOON AS YOU CAN.
PPP Money – Nearly All Gone: Only $8 billion remains available. Source: CBS News, April 6, 2021.
A third round of Paycheck Protection Program (PPP) loans was authorized by the passage of H.R. 133: Consolidated Appropriations Act, 2021 into law on Dec. 27, 2020. ... Business owners can still apply for an EIDL loan but PPP loans are no longer available.
You can't apply for a first-draw PPP loan AND a second-draw PPP loan at the same time, but if you act quickly, you can get your first draw funding and spend it in a legal fashion (i.e., on payroll expenses—which in the case of independent contractors, eligible self-employed individuals, or sole proprietors means paying ...
What's updated for the second round of PPP? ... This means, like the first PPP loan, the second round of PPP loans will also be fully forgivable if you follow the forgiveness guidelines. At least 60% of the loan must be spent on payroll and the rest spent on other eligible expenses.
Borrowers can apply for a Second Draw PPP Loan until March 31, 2021, through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, eligible non-bank lender, or Farm Credit System institution that is participating in PPP.
Loans are available both as “second-draw” loans for borrowers who received funding in the first round, and as “first-draw” loans to first-time borrowers. Currently, the last day to apply for and receive a PPP loan of any kind – first- or second-draw – is May 31, 2021 (an extension from March 31).
I didn't spend all of my first PPP loan money… can I still get a second draw PPP loan? As long as you certify that you have spent, or will spend, the full amount of your first PPP loan on eligible expenses before your second draw PPP loan is funded, you can still qualify for a second draw loan.
PPP now allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP loan with the same general loan terms as their First Draw PPP loan. Second Draw PPP loans can be used to help fund payroll costs, including benefits.
Eligibility requires a business to have 300 employees or fewer. Also, the business must have a 25% decrease in any quarter's gross receipts from 2019 to 2020, which shows the company has experienced financial hardship. Gross receipts include all revenue, including interest and dividends.
If you got a Paycheck Protection Program loan during the first draw, your deadline for applying for forgiveness is August 30, 2021. The applications for forgiveness are made through your lender or through the PPP Loan Forgiveness Portal opened by the Small Business Administration.
PPP borrowers can have their first- and second-draw loans forgiven if the funds are used on eligible costs. As with the first round of the PPP, the costs eligible for loan forgiveness in the revised PPP include payroll, rent, covered mortgage interest, and utilities.
Whether a PPP loan fraud case involves thousands, hundreds of thousands, or millions, defendants can receive prison sentences in these cases. If there is evidence of fraud, people can go to jail for a $20,000 PPP loan, just like someone whose PPP loan was $100,000 or $1 million.
You may be able to wrap up the forgiveness process earlier. If you reduce your full-time employee count or employee wages after the 8-week period, that might reduce your eligible forgiveness amounts. However, a longer, 24-week covered period gives you more time to remedy any reductions in employee count or wages.
There is no risk of being flagged for fraud for applying more than once. In fact, it's a good idea to apply for your second PPP loan with multiple lenders to maximize your chance of obtaining funding.
Applying for a First and Second Draw in the Same Round
If you received your PPP First Draw in 2021, you may be eligible to apply for a Second Draw before the program expires on May 31.
There's no limit to how many times you can apply for an SBA loan. The only limitation is for special long programs, like the Paycheck Protection Program (PPP). Borrowers can only draw twice from the PPP loans at this time.
However, as a self-employed worker, you can claim all 100% of your PPP loan as payroll under compensation replacement. Forgivable cash compensation is limited to $100,000 per employee on an annualized basis, which means you can use all $20,833 on your personal salary.
At least 60% of your PPP loan must be used for payroll costs and the remainder must only be used for qualifying non-payroll costs. Businesses have up to 24 weeks from the date you received the loan to spend the funds in a manner that is eligible for loan forgiveness.
The eight-week period to use your PPP funds was extended to 24 weeks. Previously, you had to spend at least 75% of the funds on payroll. You now need to spend only 60% of the funds on payroll.
A 30-year-old Texas man has been sentenced to 9 years and 2 months in prison for fraudulently acquiring more than $1.6 million in funds through the government's coronavirus pandemic Paycheck Protection Program [PPP], the Department of Justice said Monday.
Unlike other SBA loans, PPP loans are designed to be partially or fully forgivable, meaning you won't have to pay them back as long as you follow certain rules. ... Business owners could get their loans forgiven if they used at least 60% of the money to cover payroll costs.
Hunter VanPelt, 49, was sentenced to prison time for bank fraud related to the Paycheck Protection Program (PPP). Authorities say VanPelt submitted six false and fraudulent loan applications between April 27, 2020 and June 17, 2020 on behalf of companies that she owned or controlled, totaling more than $7.9 million.