The Small Business Association (SBA) is currently offering Payroll Protection Program (PPP) loans until May 31, 2021. If the PPP funds are used as intended, it is 100% forgivable.
The SBA is also accepting applications for the Economic Injury Disaster Loan (EIDL), with rates of 3.75% for businesses fixed; 2.75% for nonprofits (fixed); 30-years term and no prepayment penalties or fees. Let’s Talk PPP: DO NOT wait until the last minute to apply. Most lenders will stop accepting applications a few weeks out, if not already. Apply now! It’s a good idea to get your business professional involved in the application process. Here’re some additional details provided by the SBA that you should be aware of: First Draw - Loan details PPP is a loan designed to provide a direct incentive for small businesses to keep their workers on payroll. First Draw PPP loans can be used to help fund payroll costs, including benefits, and 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. SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses.
The following entities affected by COVID-19 may be eligible:
Second Draw - Loan Details 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 loans can be used to help fund payroll costs, including benefits. Funds can 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. Maximum loan amount and increased assistance for accommodation and food services businesses. Who May Qualify A borrower is generally eligible for a Second Draw PPP loan if the borrower:
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