PPP Reboot – More Small Business Relief

Last week, the SBA reopened the Paycheck Protection Program (PPP) and will begin accepting applications for “Second Draw” forgivable PPP loans.  

Here is a summary of the eligibility rules for Second Draw loans.  Borrowers can draw loans of up to $2 million provided they: 

  1. Have previously received a “First Draw” PPP loan and used the full amount on eligible expenses  
  1. Have 300 or fewer employees
  1. Document at least a 25% reduction in gross receipts in comparable 2020 and 2019 quarters

PPP borrowers may have their loans forgiven if the proceeds are spent on the following expenses:  payroll (including benefits), mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.   

To receive full forgiveness, borrowers must spend at least 60% of the funds on payroll expenses over an 8-24 week period.  

This is a high-level overview; if you have questions about the specifics as they apply to your business, please contact us. We are here to help!

Source: U.S. Small Business Administration

Emily Balmages, CFP®, CRTP

Wealth Advisor, Warren Street Wealth Advisors

Investment Advisor Representative, Warren Street Wealth Advisors, LLC., a Registered Investment Advisor

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