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Jeff Flock of FOX Business on relief caps for small businesses and how businesses are coping amid the pandemic.
The Small Business Administration reopened the paycheck protection program to more lenders on Friday, with the second iteration of the popular program launched earlier this week.
All financial institutions with $ 1 billion in assets or less can reopen their P3 loan programs on Friday.
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Lenders with larger assets can do so on Tuesday.
“The second round of PPP could not have come at a better time, and the SBA is doing everything possible to ensure that small businesses have the emergency financial support they need to continue through this period of uncertainty.” SBA administrator Jovita Carranza said in a statement. .
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Small community lenders began accepting applications earlier this week to ensure smaller businesses could apply for the help they needed.
Borrowers will be able to apply for a loan until the end of March.
A December relief bill allocated $ 284 billion for additional loans, although qualifying conditions were changed slightly for second-draw loans.
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Qualifying businesses must have 300 or fewer employees and must be able to show a 25% drop in revenue between the last quarter of last year and the same period in 2020.
Loans can be distributed up to a maximum amount of $ 2 million, which is 2.5 times the average monthly salary costs in 2019 or 2020. To be forgiven, at least 60% of the money must be spent on expenses wages, while the rest can be used for rent, mortgage interest and utilities.
The good news for recipients is that those whose loans are canceled can claim tax breaks on deductible expenses this time around.
First Draw Loans will also be available for borrowers who have not received money before August 8, 2020.
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