Starting Friday, the second round of wage protection funding will be available to local businesses.
More companies will be eligible for Paycheck Protection Program loans, and the program has been extended through March 31, 2021. Congress allocated $ 284 billion to the new program, which expanded to include payroll and group health benefits – including life insurance, disability benefits, vision and dental insurance – and other PPE purchases.
To qualify as a first-time recipient, the company must have fewer than 500 full-time, part-time or seasonal employees, be operational before February 15, 2020, and remain operational.
Recipients of second loans must employ fewer than 300 full-time, part-time or seasonal workers per location. Recipients must also be able to demonstrate a decrease in sales of 25 percent or more in the first, second or third quarter of 2020 compared to 2019. They will also need to demonstrate that the store was up and running prior to February 15, 2020, and the recipient is in use or will use the full amount of the PPP from the first drawing.
Companies eligible for first-time or second-time loan recipients include sole proprietorships, independent contractors, the self-employed, religious organizations with fewer than 150 employees, certain nonprofits, and seasonal employers that meet the definition of the law.
The interest rates on PPP loans are non-cumulative and non-adjustable, and waived PPP loans are non-taxable, although waived expenses are tax deductible. The application for under $ 150,000 loan waiver will also have a new, simpler application page.
Borrowers can choose between eight to 24 weeks of coverage, and a portion of the PPP funding is provided to community lenders and businesses operating in low-income areas.
For more information, see metroiba.org.