How to Apply for PPP Round 2

The Covid-19 pandemic creates economic crisis to Hard-hit small businesses and NonProfits act has enabled a new round of PPP for eligible borrowers .Congress has approved a Covid-19 relief package worth $900 billion. $284 has been declared for 2nd Round of PPP. The PPP resumed January 11, 2021.how to apply for PPP Round 2 is described below:

Purpose

• The main purpose of this loan is to help businesses keep their workforce employed during Covid-19 crisis.
• It is used to fund payroll cost, rent, and to help the needy people.
• The purpose of PPP and loan forgiveness is to provide economic relief to small businesses.

PPP 2nd Round

The PPP 2nd Round includes:

1. $284 billion.
2. The date is extended until 31, March 2021.
3. Businesses with fewer than 300 employees can apply for 2nd Round.
4. New types of business are eligible for PPP loans.

Eligibility

Eligibility criteria are:

1. Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses.
2. Business employs fewer than 300 employees. If a business has multiple locations, each location must have fewer than 300 employees.
3. The business was formed before the 15th of February 2020 and has been operating since then.

Loan Amount

The amount of the PPP loan is based on the applicant’s payroll costs:

Payroll costs include salaries, wages, cash tips , vacation leave , sick leave and other compensation paid to employees , up to $46 , 154 per employee.

The Consolidated Appropriations Act of 2021 sets aside allocations for specific business types hard hit by Covid-19. The following amounts have been allocated:

• $15 billion has been set aside for both first- and second-draw. PPP loans to be issued by community financial institutions, including CDFIs and MDIs.
• $15 billion has been set aside for both first- and second-draw PPP loans to be issued by certain small depository institutions.
• $57 million for microloans.
• $15 billion for live venue grant

Apply for 2nd Round

Simple statements and documentation provide to most businesses with employees including partnerships from the pay period that covered 15, February 2020. Documentation from any 12 week period between 15 , February 2019, to 15 , February 2020 for seasonal businesses.

SBA has provided a standard application form. The private lender is allowed to use their own paper form. The applicant has to attach documentation to support the amount of the loan applied for such as payroll report , payroll tax filing .

You can download the following PPP borrower application form . Applying for form is free to the applicant. Making a false statement to obtain a PPP loan is a crime subject to possible imprisonment, fines, or both.

Loan Forgiveness

The PPP loan will be forgiven either partially or fully it is depends on borrower’s condition .A business may apply for loan forgiveness at any time on or before the maturity date of the loan, including before the covered period ends in the case of a business that has expended all of the PPP loan proceeds for which forgiveness is requested

Steps for Loan Forgiveness

1. Fill the application form
2. Review the PPP advisor
3. Submit and wait for approval