New Stimulus Package Ppp Requirements

You can get forgiveness for this ppp loan by spending at least 60 on payroll expenses wages salaries retirement group health insurance etc and a maximum of 40 on other qualifying expenses.

New stimulus package ppp requirements. Employ no more than 300 employees this is a reduction from the 500 employees specified in the cares act passed back in march of 2020. If you got a ppp loan in the first round you can get a second draw ppp loan provided your business does not employ more than 300 employees has used or will use the full amount of the first ppp and can demonstrate at least a 25 percent reduction in gross receipts in the first second or third quarter of 2020 relative to the same quarter in 2019. However an otherwise eligible applicant must also meet the following criteria.

New entities can qualify for ppp loans based on. A prior recipient of a ppp loan may apply for a ppp second draw loan. For those few borrowers who received a ppp loan within the last 90 days the new act requires that the aggregate of the new and old loan will not exceed 10 million.

The bill which runs over 5 000 pages expands the paycheck protection program ppp which was originally established when the cares act was enacted earlier this year the stimulus bill allocates 284 billion for new ppp loans. The act introduces a new simplified process for loan forgiveness applications for loans of 150 000 or less. Small business administration sba with an additional 284 billion for ppp loans 20 billion for economic injury disaster loan eidl grants and 11 billion to the u.

For seasonal employers the maximum amount of ppp loans is based on the average monthly payroll costs for a 12 week period selected by the borrower. The so called second draw ppp will be limited to companies with fewer than 300 employees down from 500 in round one who can show at least a 25 percent drop in revenue for any one quarter this. No enforcement action.

Late on december 21 2020 congress passed its latest stimulus package.