Second Round PPP Loan Information for Small Business Owners

The Paycheck Protection Program (PPP) has been a topic of conversation in our office and across the country since its inception at the beginning of the pandemic last year. The opening of the program was problematic. Many banks were overloaded with applications while others weren’t participating in the program at all. Some huge corporations received funding while small businesses were left high and dry. The good news is, the government seemed to have learned from this faulty rollout and is doing things differently this time around.

To begin with, there is an exclusivity period for the smallest of businesses. If your company has fewer than 20 employees you are eligible to apply from now until Tuesday, March 9 without competition from bigger borrowers. After that day, lenders will begin submitting applications from larger organizations. The final deadline for PPP loan applications is March 31 of this year.

During the initial rollout of this program, many banks hadn’t determined whether they would offer these loans. The process was confusing, and the program wasn’t funded enough to meet the needs of all applicants. Fortunately, now, banks are prepared to meet the requests of their clients, and more banks are participating in the program. But you must be aware that businesses don’t have to exclusively deal with their banks I recommend that you connect with your accountant so he or she can help you determine how much you may be eligible for.

Additionally, it’s not just traditional banks that are getting in on the PPP loan action. Companies like Quickbooks, Square, and Paypal are also on the list of lenders. While there is plenty of opportunity for these loans, you must collaborate with a professional who can help you get the right amount of money and who can help you dot your i’s and cross your t’s so that you are using the funds as required. Otherwise, you can be required to pay the money back.

This “second draw” of PPP loan funding is intended for business owners who received the “first draw” and who used the money as intended. If you need help processing your PPP loan application, call your accountant or banker today. If you don’t already have an accountant, we’re here to help. Remember, time is of the essence.