A second PPP loan is only available to businesses that were in operation before February 15, 2020. They must have used up their initial PPP loan and have incurred a 25% or more reduction in revenue in 2020. … If the businesses recorded $15,000 or less in Q2 sales in 2020, they are eligible to apply for a second PPP loan.
Also to know is, can U Get 2 PPP loans?
You may only apply for a second PPP loan if your business: … Has used or will use the full amount of the first PPP. AND can demonstrate at least a 25 percent reduction in gross receipts in the first, second, or third quarter of 2020 relative to the same quarter in 2019.
Accordingly, can you get 2 PPP loans 2021?
You can’t apply for a first-draw PPP loan AND a second-draw PPP loan at the same time, but if you act quickly, you can get your first draw funding and spend it in a legal fashion (i.e., on payroll expenses—which in the case of independent contractors, eligible self-employed individuals, or sole proprietors means paying …
Can you go to jail for PPP loan?
Depending on the circumstances, the federal government might charge people accused of defrauding the PPP under the following provisions: 15 U.S.C. § 645: Making a false statement to the SBA. This can result in a fine of up to $5,000 and up to 2 years in prison.
When can you apply for the Second Draw? Eight weeks must pass from the time you get the First Draw PPP until the Second Draw PPP is disbursed to you. You can apply for the Second Draw before the 8 weeks has passed. However, if you do so, you want to make sure you don’t accept the Second Draw money until after 8 weeks.
The SBA (Small Business Administration) manages funding for the PPP loan, although third-party banks and lenders have assisted it throughout the process. According to the SBA, approval of funds should occur within 10 calendar days.
The deadline of May 31, 2021 is the same for both applications. Businesses are eligible for a Second Draw loan if: They previously received a First Draw PPP loan. They have already, or will soon, use the full amount of their first loan.
Whether you now take your first or second PPP loan, these loans will have the same terms as the original PPP loan. This means, like the first PPP loan, the second round of PPP loans will also be fully forgivable if you follow the forgiveness guidelines.
Eligibility requires a business to have 300 employees or fewer. Also, the business must have a 25% decrease in any quarter’s gross receipts from 2019 to 2020, which shows the company has experienced financial hardship. Gross receipts include all revenue, including interest and dividends.
There Won’t Be Another PPP Loan in 2021, but Other Programs Can Help. The SBA (Small Business Administration) isn’t planning another round of PPP (Paycheck Protection Program) loans. … 2020, PPP loans were meant to provide needed relief to businesses faced with shutdowns during the pandemic.