‘Get your ducks in a row’ for upcoming round of PPP funds
A new round of Paycheck Protection Program loans worth more than $ 284 billion will soon be available to small businesses. The funds are only part of the $ 900 pandemic relief bill passed Monday.
So-called PPP2 loans are available to qualified first-time borrowers with 300 or fewer employees as well as sole proprietorships, independent contractors and authorized self-employed. For the first time, News and some nonprofits are eligible for the funds.
Companies that received funding in the first round can reapply, provided they have 300 or fewer employees and can see a 25% decrease in gross sales in each quarter of 2020 compared to the same quarter of the previous year.
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Borrowers like hotels and restaurants have an extra boost and can get up to 3.5 times their average monthly wage bill, subject to a maximum of $ 2 million compared to 2.5 times other borrowers.
The stimulus packages will also provide $ 15 billion for theaters, live venues and other cultural institutions. Another $ 15 billion will be allocated to community development financial institutions or CDFIs and minority depositaries to help low-income and underrepresented small business owners get help this time around.
The Small Business Administration has not yet announced when the application portal will open. In the first iteration, the applications were made online on April 10th - two weeks after the signing of the CARES Act that created the program.
More than five million companies nationwide have received over $ 523 billion in PPP loans since March.
Florida PPP loans cost $ 31.9 billion and saved 3.3 million jobs
This time around, interest will likely surpass the first round, said Mitch Helfer, accountant and owner of CPA Miami.
"Many people who were supposed to apply for the first time, but were not, are now very interested," said Helfer. Demand was so high earlier this year that his company had to install an automated message to place calls from customers asking for PPP loans.
Helfer received calls one day after the new loans were announced. His advice to applicants? Get your ducks in a row.
"You should use what is there for you, as there is a certain uncertainty about what will happen in the future," said Helfer. "You don't have to take the money - you don't even have to use it, but it's nice to know it's available.
The upcoming PPP loans will be a welcome opportunity for many Miami small business owners, said Kathleen Murphy, executive director of the Miami Bayside Foundation, a local nonprofit and certified CDFI.
"It's very necessary right now because so many small businesses are suffering," Murphy said.
The organization helps businesses, including startups, that cannot get credit from a traditional bank. You made hundreds of calls when PPP funds were first introduced in March and CDFIs were originally phased out.
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