PPP Round 3 applies to businesses with 500 or fewer employees, or if you're getting a second draw loan, 300 or fewer. They also apply to businesses that are categorized as being “Accommodation or Food Services” and have 500 or fewer employees per location (300 if you need a second draw loan).
PPP Application Deadline Extended to May 2021: The U.S. Senate voted to extend the PPP program until the end of May 2021, giving small businesses more time to apply and the government more time to process requests.
It's currently looking like the COVID-19 relief SBA programs will NOT be available come 2022. The Payment Protection Program (PPP) officially ended on May 31, 2021, and the COVID-19 Economic Injury Disaster Loan (EIDL) program is set to close on December 31, 2021.
The House and Senate have passed bill H.R 1799 – PPP Extension Act of 2021 that extends the previous March 31, 2021 PPP loan application deadline to June 30, 2021. The bill was signed into law by President Biden on March 30, 2021.
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.
Key Takeaways. 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.
IMPORTANT UPDATE FOR 2021: Congress has approved an extension of the PPP loan program. SBA will accept applications through May 31, 2021, including “second draw” PPP loans for businesses that received PPP funding in 2020.
The Federal Reserve Board on Friday announced it will extend for a final time its Paycheck Protection Program Liquidity Facility, or PPPLF, by an additional month to July 30, 2021.
(new for 2021) IMPORTANT UPDATE FOR 2021: Congress approved an extension of the PPP loan program until June 30, 2021, including “second draw” PPP loans for businesses that received PPP funding in 2020.
The Paycheck Protection Program closed on May 28, 2021. The SBA is no longer accepting new applications from participating lenders.
PPP Round 3 applies to businesses with 500 or fewer employees, or if you're getting a second draw loan, 300 or fewer. They also apply to businesses that are categorized as being “Accommodation or Food Services” and have 500 or fewer employees per location (300 if you need a second draw loan).
There is a limit of one PPP loan per tax ID. If your second business has a separate unique EIN, it's eligible to apply for the PPP as well.
Can I increase my PPP loan amount? You are eligible to increase your PPP loan amount if you meet both of these criteria: You have not already received forgiveness on your original PPP loan. The increase you are requesting doesn't take you above your maximum PPP loan amount in 2020.
PPP borrowers are eligible for up to 2.5x monthly payroll costs for their initial PPP loan, as well as any second draw.
Wire Fraud: If you used a device, like telephone, internet, etc, to defraud an institution in order to gain funds from a PPP loan – you can be convicted of wire fraud. Penalties for wire fraud can include a prison sentence up to 20 years, and in addition – restitution to anyone impacted.
How many times can you apply for an SBA loan? 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.
Like many small business owners, your business exists as an extension of yourself. It is your identity and your hard work. However, you cannot use you SBA loan to pay off your personal debt, such as credit cards, mortgage or other debts.
As of January 1, 2022, SBA stopped accepting applications for new COVID EIDL loans or advances.
This non-bank commercial lender is now accepting applications for first and second PPP loan applications via its website.
Not all PPP loans will be audited. However, the SBA may opt to audit any loan — even smaller ones — after seeking loan forgiveness. Can a forgiven PPP loan be audited? Even if a loan is already forgiven, there is still a chance that the SBA will audit you.
EIDL loans cannot be forgiven. However, EIDL loans do have a deferment period. Any EIDL loan approved in 2020, 2021, and 2022 can be deferred up to 30 months from the date of the note. Full or partial payments can be made during this time but are not required.
Repay your loan at 1% over the next two to five years: If you took out your loan before the passage of the PPP Flexibility Act on June 5, 2020, you have two years to pay off your loan balance. If you took out your loan after that date, you'll have five years. PPP loans accrue 1% interest over that time period.
The EIDL advance program funds were exhausted and are no longer available. With the second round of stimulus, the grant was refunded, but targeted towards low-income communities and with stricter eligibility.