Second Round PPP Loan SBA
Good news everyone. The new PPP program is going to reopen next week. Hello, from freedom tax accounting. We’re an accounting firm where we have been providing quality tax and accounting services. Now over 20 years, we just wanted to make this quick video with the latest update on the new PPP loan program.
The SBA has just announced that the PPP program is going to reopen the week of January 11th. As you can see this as this just came out January 8th, and this is the latest news released directly from the SBA. And it reads that the SBA is announcing today that the paycheck protection program will reopen.
The week of January 11th for new borrowers and certain existing PPP borrowers to promote access to capital initially only community financial institutions will be able to make first drop PPP loans on Monday, January 11th and second PPP DRO loans on Wednesday, January 13th. The PPP will open to all participating lenders shortly after.
What does this mean? This means that yes, that PPP portal will be open next week, but he will not be open for everyone. It will first be available to small community banks, and this is consistent with the following. It is consistent with a letter that Miss Jovita Carranza, which is the administrator of the SBA.
She published this letter also at the beginning of this week that says the following: to efficiently and effectively implement the economic aid act and to ensure. Increased access to PPP for minority under underserved veteran and woman-owned businesses, concerns as BA is undertaking the following steps to accept PPP loans, applications from community financial institutions for at least the first two days when the PPP loan portal reopens.
So the SBA came to a lot of bad reputation and bad press the first time around because when they opened the portal, a lot of the big, big businesses got the money first and the money ran out quick. So to make sure that now smaller businesses that are owned by minority underserved veterans with women-owned industries.
They are opening the PPP loan program to them first. Now it does say that they’re going to open it first for at least the first two days. But nowhere they are saying that if you want to apply for the first PPP loan if you did not receive the PPP loan in the past, you may apply for the first one.
Starting January 8th, 11th, if you are one of those minority-owned and work with a community financial institution, so for the rest of us, that one to apply for the new PPP. The portal may be open in the next couple of days after January 11th, for those who want to apply for a second PPP loan, it will start January 13th.
But as we said, they will start first with community financial institutions. So if they say that it’s at least two days, we may expect the other lending institutions to start accepting a PPP loan applications on January 15th. So anyway, doesn’t matter the date it is sometime next week and it is pretty soon.
The important thing is that also in this news release that the SBA announces that this round of PPP will be going through March 31st. So it’s a very short time to apply for a new PPP loan. But if this is anyway similar to what happened in 2020, we’re pretty sure that this date is going to be moved back and you’re going to have more time.
But the official letter says that new PPP loan program goes through March 31st. So this is good news as BA guidance is out. So now it does say here for those of you who want to apply for the second PPP loan, it shows you, you have to demonstrate at least a 25% reduction in grocery seats between comparable quarters in 2019 and 2020.
So for those of you who don’t have your financial statements ready? This week, get your profit and losses done for 2019 and 2020 on a monthly basis. So that way you have the documentation ready to prove that you have a 25% reduction in gross receipts, so you can apply for the second PPP loan. So anyway, we just wanted to put you up to date with the latest news on the SBA PPP loan program.
God bless you, everyone. See you later. Bye-bye.