The second round of the Paycheck Protection Program (PPP) offers financial relief to business owners continuing to struggle amid the ongoing coronavirus pandemic.
Bob Redding, who works for the Redding Firm and serves as a lobbyist for agricultural groups in Washington, D.C., encourages vegetable and specialty crop producers to consider enrolling in the program.
“We also have a second round of the Paycheck Protection Program. If you participated the first round, you ought to consider it again. If you didn’t participate in the first round of PPP, you can still participate in the second round. There are no prohibitions there. It’s a little broader than before, a little more restrictive in some areas. But the criteria used for the forgiveness portion of the loan include more items,” Redding said.
Paycheck Protection Program Information
According to the U.S. Department of Treasury, the U.S. Small Business Administration (SBA), along with the Treasury Department will re-open the PPP loan portal to PPP-eligible lenders with $1 billion or less in assets for First and Second Draw applications on Friday, Jan. 15 at 9 a.m. The portal will open to all participating PPP lenders on Tuesday, Jan. 19 to submit First and Second Draw loan applications to the SBA.
According to the U.S. Department of Treasury press release, First Draw PPP Loans are for borrowers who have not received a PPP loan before August 8, 2020. The first round of PPP ran from March to August 2020. Second Draw PPP Loans are for eligible small businesses with 300 employees or less, that previously received a First Draw PPP Loan, will use or have used the full amount only for authorized uses, and that can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020. The maximum amount of a Second Draw PPP loan is $2 million.