The PPP application is currently on hold as we await additional details from the SBA regarding continued eligibility of applications with Community Financial Institutions (CFIs).
What is the new payment protection program in 2021? Congress has revived the Paycheck Protection Program, providing $284.5 billion in forgivable coronavirus relief loans to small businesses. We’ve got your back. Lendinero offers SBA PPP loans. $0 Fee to apply online. SBA PPP loans provide financial assistance to small businesses that have been affected by COVID-19 to help them keep employees on their payrolls. Lendinero is an approved SBA referral agent for PPP loans and is participating along with an SBA approved lender.
If you have not already been approved for a PPP loan, you can APPLY NOW, even if you put in a PPP application elsewhere. Applying for a PPP loan via our platform will not impact the status of any prior PPP applications you may have submitted. You will need to have ready new financial documentation to present. Also, if you file a 1040 with a schedule C.
In the meantime, these are the latest updates that we have for PPP funding in 2021. In time, these guidelines may change. Certainly, we saw a lot changes in 2020. However, 2021 should be different. In any event, we will keep your informed of any updates to PPP.
First-time borrowers. In general, borrowers can have no more than 500 employees and their business must have been in operation as of February 15, 2020. The first loan can be up to 2.5 times the business’ average monthly payroll costs, up to a $10 million loan maximum.
Second-time borrowers. Businesses can apply for a second PPP loan if they’ve spent or expect to spend the full amount of their first PPP loan before they receive funding for the second loan. In general, borrowers can have no more than 300 employees. The second loan can be up to 2.5 times the business’ average monthly payroll costs, up to a $2 million loan maximum.
Accommodations and Food Services companies with NAICS code 72 can borrow up to 3.5 times the business’ average monthly payroll costs, up to a $2 million loan maximum.
All businesses applying for a second PPP loan must show that their business revenue declined by at least 25% in any quarter in 2020 compared to the same quarter in 2019.
Businesses can apply for a second loan whether or not they have requested Forgiveness.
In general, these highlights will apply to many borrowers, but there are some exceptions. Another key point, is to obtain for full program details, visit SBA.gov and Treasury.gov
Finally, congress has set aside funds for new and smaller borrowers, borrowers in underserved communities, and for community and smaller lenders. So, the SBA will roll out the PPP program in phases:
Some community and smaller lenders, were expected to start January 11 (first loan) and January 13 (second loan).
All other participating lenders will inform, shortly after that. However, you are not exclusive to one lender.
How to prepare
To conclude, you may want to contact your Lendinero or our business advisory unit. Moreover, we will work hand in hand with your accountant, attorney or other trusted advisors. Access business advisory today for PPP. Download Form