The SBA will start the PPP loans again to businesses affected by the pandemic on January 11th. Here are the key provisions:
Businesses that did not get a first draw of PPP can apply if they have an economic need for the loans. To get them full forgiven, they have to use 60% of the proceeds on payroll and 40% on other allowed costs
Business can use the PPP for property damage and worker safety costs and costs to maintain a remote office. This was newly added in Bill that was signed on Dec 27th 2020
Business that already got a first draw can get a second draw of PPP if they can show their 2020 quarterly revenue was 25% lower than their 2019 yearly revenues.
PPP obtained in the first draw and EIDL advances will not count in the revenue calculations.
Cetain business that were hard hit by the pandemic like restaurants and casinos can request 3.5 times of the payroll numbers.
PPP borrowers can choose their covered period to be between 8 to 24 weeks
Certain PPP borrowers can modify their first draw loans if they have not received forgiveness and certain borrowers can apply for new second draw PPP loans .
There are additional stimulus and other provisions that are also part of the Appropriations bill that was signed on Dec 27th, 2020