Economic Stimulus Round 2 - PPP Update
Here are the important facts to remember regarding PPP with the potential passing of a new Economic Stimulus Package in Congress tomorrow, Monday, December 21, 2020.
Most important, the grant is first come first serve. 60% of Tuolumne County Businesses received first round funding compared to 18% in our region because you acted quickly in March/April to receive funding. Plan ahead again.
Call your bank tomorrow.
My assumption is banks will not accept an application tomorrow, but I am suggesting you to call to find out if your bank of preference will participate in PPP.
Remember, banks prioritized clients.
If your bank is not participating, consult the following link from June 18, 2020, which covers the banks administering a PPP Application. I will update the list this week upon hearing their status: PPP BANKS HERE
Some changes to the program are as follows:
It would expand eligibility under the program for nonprofits, local newspapers and radio and TV broadcasters.
A new allocation of $15 billion for performance venues, independent movie theaters and other cultural institutions
Reminder, The PPP is a federal loan program that helps small and medium-sized businesses impacted by the coronavirus (COVID-19) to assist with covering costs related to payroll (including healthcare and certain related expenses), mortgage interest, rent, leases, utilities and interest on existing debt. The loan is an SBA 7(a) loan.
Features of the PPP Loan were as follows in May of 2020 (they have indicated it will be the same program):
1.00% fixed interest rate
Loan amounts up to 2.5x average covered monthly payroll costs, not to exceed $10 million
No prepayment penalties
No business collateral or personal guarantee required
Loan forgiveness for eligible payroll, mortgage interest, rent and utilities during the covered period after origination
Payments are deferred for six months
As always, I will update you as I receive more information.
Please reach out if you have any questions.