PPP2 Paycheck Protection Program Opens for All Major Banks
PPP2 Paycheck Protection ProgramOpens Today for All Major Banks
The U.S. Small Business Administration, in consultation with the U.S. Treasury Department, opened the Paycheck Protection Program (PPP) loan portal to PPP-eligible lenders with $1 billion or less in assets for First and Second Draw applications on Friday, January 15, 2021 at 9 am ET.
The portal will fully open today, Tuesday, January 19, 2021 to all participating PPP lenders to submit First and Second Draw loan applications to SBA.
There will be two types of loans in the third round of PPP lending:
• First time PPP loans.
• Second draw PPP loans.
The rules and regulations for the first time PPP loans are very similar to the first 2 rounds. However, the guidelines for the second draw PPP loans are very different. Here are a few highlights:
- Streamlined application for loans below $150,000.
- Maximum loan amount equal to the lesser of 2.5 x average monthly payroll for elected period up to $2 million. (NAICS code 72 will qualify for up to 3.5x average monthly payroll up to $2 million.)
- An additional eligibility test. The borrower must be able to show that their gross revenue decreased 25% in 2020 as compared to a corresponding period in 2019.
- A new Application, Form 2483-SD will be used. Some banks require that the application be submitted online.
- If you use Paychex you can request your payroll reports online.
Please feel free to contact me if you have any questions:
Vice President – Market Manager
Doral Financial Center
8484 NW 36 St Suite 100
Doral, FL 33166
NMLS ID# 1057610
(P) 305-341-5367 | (F) 305-639-3095 | (C) 786-267-0013
I wanted to take a moment to provide some suggestions to improve your chances of receiving funding through the new PPP program:
- If it’s your second loan use the same bank that you used for the first loan.
- Apply immediately as soon as the application is available – don’t wait until it’s too late.
- Prepare all documents and be ready to answer all the questions, including financial questions with your CPA or accountant.
- Most banks will require that you have an account with them. See the list of recommended banks below. These banks were proactive in helping business owners in the last round of PPP and are very customer service friendly.
- See a list of suggested local banks willing to help you and other available Grants and funds at https://conta.cc/3nQNYIc
Manny Sarmiento -CEO
Doral Chamber of Commerce, Inc. | http://www.doralchamber.org/membership
(305) 546-3301 – Cell