PPP 1.0 ran out of funding in a matter of days, in part due to larger businesses who were favored by their larger banks.
PPP 1.1 added funding and fixed provisions that made loan forgiveness requirements difficult to achieve, mainly allowing spend-down over 24 weeks instead of 8 weeks.
The latest COVID relief package includes PPP 2.0, adds new funding and authorizes a second round of forgivable loans. Under PPP 2.0 a business can be eligible for a second loan if it:
- Employs not more than 300 employees;
- Has used or will use the full amount of their first PPP; and
- Can demonstrate at least a 25 percent reduction in gross receipts in one quarter of 2020, compared to the same quarter of 2019.
My suggestion: bring your books up to date now, to determine if you qualify for PPP 2.0, so that you can get an application is as soon as the loan window opens.
If there’s another rush for funding, you want to be at the front of the line.
UPDATE:The program, set to expire March 31, 2021, was extended to May 31. If you are still unsure, talk to your accountant or banker. This opportunity should not be wasted!
