Second Stimulus Package Ppp Loan

The new coronavirus stimulus package allows some small businesses to apply for a second loan through the paycheck protection program ppp.

Second stimulus package ppp loan. As part of an end of year pandemic relief package congress has passed several changes to the paycheck protection program ppp and created a second draw ppp for small businesses that have exhausted their initial loan. Key elements of the act associated with the second round of ppp loans. 267 5 billion allocated some from funds left over from the april 2020 ppp funding.

For one only companies with 300 or fewer employees will be eligible for second loans down from a limit of 500 in the program s first iteration according to text of the stimulus legislation. Second draw loans are targeted at hard hit businesses that employ 300 or fewer employees and that have used or will use the full amount of their first ppp loan. What s in the stimulus package for small businesses ppp loans and cultural grants.

The covid 19 relief package worth 900 billion includes 284 billion for the popular paycheck. 25 billion is reserved for businesses with 10 or fewer employees as of february 15 2020. Eligible businesses may apply for a second ppp loan.

Here s what you need to know on the latest regulations regarding second draw ppp loans. After months of disagreement congress finally approved a second stimulus package on december 20. And a second grant could be up to 50 of the first grant.

If your ppp loan was for 150 000 or less. Other changes include economic injury disaster loans unemployment compensation and stimulus checks for individuals. Could give 1 875 stimulus checks for 8.

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.