![]() ![]() ![]() You may not receive the Shuttered Venue grant If you are down 25% for the whole year, that means you were definitely down at least that much for one of the quarters, and you'll need to provide tax filings or bank statements to your lender to support your claims.Īlso, do not include your first-draw funds when counting revenue. Seasonal businesses must use the calendar quarters during which they were active, even if that does not align with their actual operating schedule.īusinesses that started between January 1 and February 15 of 2020 can compare the first quarter of 2020 to any other quarter of that year. If your revenue for any quarter of 2020 were down by 25% relative to the same quarter in 2019, you may be eligible for a second loan. If your business is closed permanently or in bankruptcy proceedings, you are not eligible to receive a second draw loan. This applies to first-time borrowers too, but unfortunately the slow pace of recovery means that for some PPP loan recipients, the original amounts weren't enough to stay afloat. You need to still be in business and not in bankruptcy In other words, don't ask for more money if you used your first loan to buy a Tesla. Not only that, but you will need to certify that the loan proceeds were spent "only for eligible expenses." In order to be considered for a second PPP loan, you must show that you have used up the funds from the original one. The process for obtaining a second loan will require borrowers to meet a slightly narrower standard than first-timers, according to recent guidance from the Small Business Administration.īelow are some of the key limitations for prospective "second draw" borrowers. Last week, the Small Business Administration reported that more than 2.5 million loans have been approved in the current iteration of the emergency aid program, for a total volume of $168.5 billion.Īs the PPP approaches its one-year anniversary of applications originally opening, many borrowers have long since used up their initial relief funds.įortunately, the reauthorization of the program passed in December allows some borrowers to tap into the program for a second time.Īpplications for first- and second-draw loans are open at all participating lenders, the SBA said this week. The Senate is expected to approve the measure soon. On Tuesday, the US House of Representatives voted overwhelmingly to extend the deadline of the Paycheck Protection Program by two months to May 31. Visit Business Insider's homepage for more stories.The SBA reports the current round of PPP has approved 2.5 million loans totalling $168.5 billion.The PPP's new rules allow borrowers to take out a "second draw" loan if they meet higher standards.The Senate will soon vote on extending the deadline for the Paycheck Protection Program to May 31.Account icon An icon in the shape of a person's head and shoulders. ![]()
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