FOX Business’ Jeff Flock on Small Business First Aid and How Businesses Adjust Amidst the Pandemic.
The Small Business Administration reopened the salary protection program Friday for more lenders, with the second iteration of the popular program starting earlier this week.
All financial institutions with an amount of $ 1 billion or less can reopen their PPP lending 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 in its power to ensure that small businesses have the necessary financial support they need to continue the time of uncertainty,” SBA Administrator Jovita Carranza said in a statement. .
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Small community lenders began accepting applications earlier this week as a way to ensure the smallest businesses are able to ask for the help they need.
Borrowers can apply for a loan until the end of March.
A $ 284 billion bill in December was granted for additional loans, although the qualifying conditions were slightly changed for second withdrawals.
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Eligible businesses must have 300 employees or less and must be able to show a 25% decrease in revenue between the last quarter of last year and the same period in 2020.
Loans can be spread out to a maximum amount of $ 2 million, or 2.5 times the average monthly 2019 or 2020 payment cost. In order to obtain forgiveness, at least 60% of the money must be spent on the wage expenses.
The good news for recipients is that those who are forgiven their loans can claim tax deductions on deductible expenses this time.
First Draw loans will also be available to borrowers who did not receive money before August 8, 2020.