What You Need to Know

Small business still reeling from the effects of the pandemic received some welcomed news in the form of additional funding for the Paycheck Protection Program (PPP). The Second Draw loan program provides an additional $284 billion for small businesses and makes loan forgiveness easier if the bulk of the funds are used for payroll and other expenses related to COVID-19. Read on as we discuss what you need to know about PPP 2.0. What is PPP? PPP is a forgivable loan program established by the CARES Act, which provides economic relief to individuals, workers, and small businesses affected by the COVID-19 crisis. PPP loans help businesses keep workers employed during the pandemic. The first round of PPP loans started in April 2020 but ran out in a matter of weeks as panicked businesses flooded the U.S. Small Business Administration (SBA) with applications. According to the terms of the loan established by the U.S. Treasury, payments can be deferred for borrowers who apply for loan forgiveness. If a borrower does not apply for loan forgiveness, payments are deferred 10 months after the end of the covered period. Starting on January 13, 2021 through March 31, 2021, eligible businesses may apply for the Second Draw PPP loan. Who qualifies for PPP 2.0? Generally, the same […]