The CRRSAA created the chance for companies and nonprofits to try to get a second PPP loan should they meet particular standards. The second-draw financial loans are more specific than first-time PPP financing, and also to meet the requirements, people must 1) posses formerly got a PPP financing and made use of the complete amount mainly for authorized uses; 2) have less than 300 staff; and 3) have had a 25% decline in gross receipts during one or more quarter of 2020 versus exactly the same quarter of 2019. Maximum mortgage dimensions for an additional PPP financing was $2 million versus ten dollars million for a first-time PPP mortgage. Also, the SBA has established a hub on second-draw PPP loans that could be beneficial.
For first-time PPP debts, businesses and nonprofits usually can request a max amount borrowed of 2.5 occasions an average month-to-month 2019 payroll. Insurance costs may also be contained in payroll costs. The SBA in addition has developed an explainer for novice PPP debts that outlines calculations a variety of kinds of companies.
For second-draw PPP debts, the utmost amount borrowed was determined as 2.5 instances typical month-to-month 2019 or 2020 payroll costs for at the most $2 million. For individuals into the accommodation and edibles groups, they might be considered to make use of an increased calculation of 3.5 occasions ordinary monthly 2019 or 2020 payroll prices, nevertheless the optimum levels continues to be at $2 million. Read more