PPP Loans Are Expanding to More Lenders – The Federal Paycheck Protection Program (PPP), which reopened this week for community lenders to begin offering forgivable business loans, will expand to allow small banks to offer forgivable PPP loans on Friday and all lenders next Tuesday. (Bloomberg News)
Info on Paycheck Protection Program Loans – The loans will be available both to first-time applicants and to some returning borrowers. Borrowers seeking a second loan will need to demonstrate a 25% drop in gross receipts between comparable quarters in 2019 and 2020. Second loans will also be limited to companies with 300 or fewer workers, and the amounts will be capped at $2 million. First- and second-time applicants can borrow up to 2.5 times their monthly payroll. (Those in the lodging and food service business who are seeking a second loan can borrow 3.5 times their payroll, a concession to the devastation those industries have faced.) The loans – which are made by banks but backed by the federal government – can be forgiven if borrowers spend at least 60% of the money paying workers and use the rest on other allowable expenses. (The New York Times)
The Fine Print on the Loans – Guidance and other details from the U.S. Small Business Administration. (The SBA)
How to Get a PPP Loan Forgiven – The SBA said it has received 1.3 million forgiveness applications totaling about $170.5 billion. It has made payment on nearly 85% of the applications, forgiving over $100 billion, the SBA said. Here is how to get a PPP loan forgiven. (ROI-NJ)