Businesses with less than 20 employees will have a two week head start on larger companies to apply for a second round of Payroll Protection Program funds. Starting tomorrow applications will be accepted for first time borrowers, and continued grants and loans from the program.
Following the 2 week window for businesses with less than 20 employees, a list of other businesses will qualify. As of the first week of March self-employed, sole proprietors and independent contractors can qualify for the loans.
If you were in business before March of 2019 and can show a loss in income of 25% or greater for comparable quarters following that time you should qualify for this program. However, the type of business you have determines how much you qualify for.
Service industry or those with an NAICS code will qualify for the highest award which is 3.5 times the businesses monthly payroll. All other businesses qualify for 2.5 times their monthly payroll.
More than 1.5 Million PPP loans have been approved by the Small Business Administration since the inception of the program in the early days of the CARES Act.
PPP loans are structured to cover payroll and stipulations require that at least 60% of the amount qualifying for forgiveness be spent on payroll with the remainder to be used for utilities, rent or mortgage interest on the business. Should some portion of the expenditure be rejected for forgiveness the borrower has 5 years to repay the amount at 1% interest.
From the numbers provided by the SBA, 83% of PPP Loans are less than $100,000.00 and the average loan size nationally is just over $76,000.00.
To find out if you qualify or to start the loan process click on the following link:
Coronavirus (COVID-19): Small Business Guidance & Loan Resources