SARASOTA – Struggling small businesses affected by the pandemic could soon get a much-needed boost to keep their doors open.
“This is the long-awaited edition, second round of PPP funds,” said Neil McCurry.
The Small Business Administration (SBA) is set to roll out the second round of the Paycheck Protection Program (PPP) loans this week. It comes after Congress approved a $900 billion COVID-19 relief package as part of the Consolidated Appropriations Act.
With $284 billion said to be allocated for small businesses in need of help.
“The loan amounts are lower the max amount is $2 million as opposed to $10 million in the first plan,” said McCurry.
McCurry ,President and CEO of Sabal Palm Bank, says they are getting ready to once again process hundreds of applications to help local mom-and-pop shops that’ve survived the coronavirus crisis that almost broke the financial markets.
“We did 800 PPP loans in the original round one and we’ve been in constant contact with those customers,” said McCurry. “Helping them with forgiveness of those loans and we’ve already gotten about 25% of those loans forgiven by the SBA.”
Eligible small business owners can apply for a second PPP loan if they:
- Have no more than 300 employees.
- Have used or will use the full amount of your first PPP loan (if first round loan received).
- Can show a drop of at least 25% in annual gross receipts or for any quarter of 2020, compared with the same quarter in 2019.
- Have not permanently closed.
McCurry says first-time applicants can submit a PPP request after Monday Jan. 11th. Businesses that have already received a loan will be able to apply on Wednesday.
“One thing stands very clear, it’s going to be based on revenue reduction. So if you’re a small business and you provide quarterly tax payments you want to go ahead and get that available,” said McCurry. “So I would start preparing that information because that is what the major test will be for whether or not you qualify for a PPP loan as well.”
The U.S. Small Business Administration approved 5 million PPP loans, totaling $500 billion, in the first round of the program, which ended Aug. 8th.