On December 27, 2020, President Trump signed legislation to reopen the Paycheck Protection Program (PPP). PPP Loans are available until March 31, 2021, or until all allocated funds are disbursed. Eligible businesses that use a Professional Employer Organization (PEO) may apply for a PPP Loan.
First Draw PPP Loans
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. First Draw PPP Loans can be used to help fund payroll costs, including benefits. They may also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations. You may apply for a First Draw PPP Loan until March 31, 2021.
Second Draw PPP Loans
The Paycheck Protection Program (PPP) now allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP Loan with the same general loan terms as their First Draw PPP Loan. Second Draw PPP Loan may only be made eligible to a borrower that (1) has received a First Draw PPP Loan, and (2) has used or will use the full amount of the First Draw PPP Loan on or before the expected date on which the Second Draw PPP Loan is disbursed to the borrower.
The documentation required to substantiate an applicant’s payroll cost calculation is generally the same as required for the First Draw PPP Loans.
For more details, click the link to review the PPP Application and Borrower Fact Sheet.