Additional Paycheck Protection Program (PPP) funds are expected to become available January 2021. Capitalize is accepting completed applications ready to be sent out. Our application is an encrypted form to ensure your submission data is transferred and stored securely within our system.
The Small Business Administration (SBA) has released the requirements for the new round of PPP loans.
If you applied for the first round of PPP and it wasn’t enough to help sustain your business during the COVID-19 pandemic, you may still be eligible for a second round of PPP.
The criteria you need to qualify for a second PPP loan:
Once a borrower receives a Preferred Lender Program (PLP) number for their loan, the loan is approved by the SBA, and funds are reserved for the borrower. Starting on the date a borrower receives a PLP number, the lender has 10 calendar days to disburse funds. The loan must be disbursed in full, and the 24-week loan forgiveness period begins the day funds are disbursed.
A lender cannot disburse funds due to delays from a borrower, like missing paperwork — the lender has 20 days to disburse funds. If they haven’t received the necessary information from the borrower by the end of that 20-day period, the loan may be canceled. The loan funds are designated for the refinancing of an Economic Injury and Disaster Loan (EIDL), the funds will be deducted from the disbursement amount and paid directly to the SBA by the lender.
The Paycheck Protection Program will help small businesses, including sole proprietors and independent contractors, and private nonprofits to maintain payrolls and continue payments such as rent and utilities. All the uses of the loans are:
For portions of the loan that are not forgiven, payments are deferred for the first 6 months. But keep in mind that interest will accrue during the 6-month deferral period.
If you own/are:
Yes, you can qualify for a PPP loan even if you already have other loans, including other SBA loans. However, you cannot use the funds from PPP loans and other loans for duplicate use at the same time. For example, if you use a disaster loan (EIDL or loan advance) to pay your business’s rent in February, you cannot also apply for a PPP loan to cover February rent.
PPP loans are calculated based on 2.5 times your business’s (or organization’s) monthly payroll costs, although some businesses will qualify for 3.5 times monthly payroll costs (as referenced above).
Yes, your PPP expenses will now be tax-deductible. Your business must spend at least 60% of the PPP on payroll costs and 40% on other costs.
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