On December 27, the President signed into law the Consolidated Appropriations Act, 2021. The Act includes a roughly $900 billion COVID-19 relief package, known as the “Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act” (“Economic Aid Act”). The Economic Aid Act makes available approximately $284.5 billion in new Paycheck Protection Program (“PPP”) funding and reopens the PPP for first- and second-draw loans on terms that are generally favorable to microbusinesses. The application period for PPP Round 2 loans will end on March 31, 2021.
Keep in mind the rules to be eligible for the Second draw of PPP:
- Second-draw PPP loan amounts cannot exceed $2 million.
- Eligible businesses must have fewer than 300 employees
- Must have used or will soon use the entire amount of their first PPP loan
- Must have experienced a decline in gross receipts of at least 25% during any quarter of 2020 as compared to the same quarter of 2019.
Therefore, if you think you may qualify for the Second draw of PPP funding let us know how we can help, so you can take advantage of this to help your business.
