As part of the new stimulus bill, $284.5 Billion Dollars has been allocated to replenish the popular Paycheck Protection Program (PPP). The Program was designed to help small businesses with potentially 100% forgivable loans to keep their employees on payroll throughout the pandemic. This new round of PPP (also known as PPP 2.0) allows for Second Draws to businesses that already received a PPP loan, as well Simplified Loan Forgiveness for qualified applicants.
Loan Amounts up to 3.5x Average Monthly Payroll Cost ($2 Million Cap)
1% Interest Rate for New and Repeat PPP Borrowers
Forgivable if 60% of the Loan is Used for Payroll
Tax Deductible if Loan is Forgiven
Less Restrictions on Forgivable Business Expenses
Simplified Forgiveness for Loans Under $150,000
Must Have Less than 300 Employees
Must Show a 25% or Greater Drop in Revenue in any Quarter of 2020, Compared to the Same Quarter in 2019
In addition to a replenished PPP, the new stimulus bill also includes $20 billion dollars in new EIDL Grants for businesses in low-income communities. Businesses that have already applied for an EIDL Grant earlier in 2020, and meet the new qualifications, may receive the full $10,000 grant (minus any amount already received) even if their EIDL applications was not approved initially.
Maximum Loan Amount of $2 Million Dollars
Low Fixed Interest Rates: 3.75% or 2.75% for non-profits
Repayment Terms up to 30 Years
No Prepayment Penalties
Deferred Payments for 12 Months
Forgivable Grants up to $10,000
Employ no more than 500 employees
Be located in a low-income community
Must have been in operation by January 31, 2020
Looking for Something Other then Disaster Relief Financing?
We offer a variety of flexible funding options to suite all your business needs