The EACA conducted a live webinar on Monday, January 11 to review of the New PPP Loan and What Details are Available from the SBA for EACs that have been devastated by the COVID pandemic.
As you may recall, the original Payroll Protection Program (PPP) was signed into law on March 27 as part of the CARES Act to provided forgive-able loans from the SBA which could be used for payroll and certain overhead expenses during business shutdowns caused by the pandemic. On Friday, June 5 the Payroll Protection Program Flexibility Act was signed into law to extend some of the benefits of the original legislation as the pandemic raged on longer than anticipate.
The covered period for those loans has been passed for some time and a New PPP Loan was signed into law on December 27. Some of the details of this newly enacted legislation are:
- $284.5 billion is provided for PPP extension
- $35 billion is set aside for first-time PPP borrowers
- $25 billion is set aside for borrowers with 10 employees or less
- You must have 300 or less employees to qualify
- You must also show a 30% revenue loss in one quarter of 2020 as compared to that quarter in 2019
- You can borrow 2.5 times your monthly payroll, up to $2 million
- Average monthly payroll can be based on either the last 12 months or the previous calendar year
- 60% payroll and 40% expenses still applies
- Borrower has the option to choose any time between 8 weeks and 24 weeks for the covered period.
