Paycheck Protection Program Round 2: SW&M Has New Documentation Available
Pursuant to the “Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act” – or what will be referred to here as Round 2 of the Paycheck Protection Program (PPP) – the United States Small Business Administration (SBA) announced that it will begin accepting applications the week of January 11. Applicants that have not received a PPP loan before may submit an application for a “first draw” PPP loan pursuant to eligibility and loan amount calculation requirements that are generally the same as previous PPP requirements. Applicants that had previously received a PPP loan may also apply for a “second draw” PPP loan pursuant to narrower eligibility requirements. Generally a second draw PPP loan may only be made to an eligibility borrower that (i) has received a PPP loan, and (ii) has used, or will use, the full amount of the PPP loan on or before the expected date on which the second draw PPP loan is disbursed to the borrower.
The allowable uses of the Round 2 PPP loans have been expanded to include:
- Covered operational expenditures;
- Covered property damage costs;
- Covered supplier costs; and
- Covered worker protection expenditures.
The loan forgiveness criteria has been amended to permit a new simplified application for loans up to $150,000. Otherwise, loan forgiveness requirements are substantially the same as they were previously.
SW&M is advising financial institutions regarding compliance with all aspects of Round 2 of PPP and currently has available for purchase loan documents adapted for both first and second draw PPP loans.
Contact SW&M for more information!