Important Things You Should Know?

PPP Round 3 midst the Covid-19 Pandemic

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  • Any eligible for-profit sole proprietor, partnership, C-Corp, S-Corp, or LLC business which meets SBA?s employee size criteria:
    • 2nd draw applicants: no more than 300 employees.
    • 1st time applicants: no more than 500 employees, or that meets SBA?s industry size employee standard if more than 500.
  • Any eligible 501(c)(3) non-profit organization.
  • Any eligible agricultural cooperative, housing cooperative, 501(c)(6) non-profit organization, or destination marketing organization that meets 2nd draw or 1st time applicant SBA employee size criteria or, if applicable, SBA industry size employee standard if more than 500.
  • Any eligible 509(c)(19) veterans organization.
  • Any eligible sec. 31(b)(2)(c) of the Small Business Act tribal business concern.
  • Any eligible independent contractor, self-employed individual, sole proprietor with no employees.
  • Any eligible business with NAICS code beginning 72 (Accommodation and Food Services) with 1 or more locations, and less than 500 employees per location.
  • Any eligible news organization that is majority owned or controlled by a NAICS code 511110 or 5151 business, or non-profit public broadcasting entity with a trade or business under NAICS code 511110 or 5151, that employs no more than 500 employees or, if applicable, SBA industry size employee standard if more than 500.
  • Any eligible small business that meets SBA?s applicable industry revenue size standard, or SBA alternative size standard.
  • For 2nd draw applicants: can demonstrate 25% or more reduction in gross receipts between comparable Quarters, 2019 vs. 2020.
  • Maximum available loan amount:
    • 2nd draw applicants: $2 million.
    • 1st time applicants: $10 million for an individual, $20 million for a corporate group.
  • Loan forgiveness periods: 8- weeks or 24-weeks, your choice.
  • Loan calculation factor:
    • 2.5x payroll, plus payroll costs.
    • 3.5x payroll, plus payroll costs, for an Accommodation and Food Services business.
  • For 2nd draw applicants: Any designated eligible business which has used, or will use, the full amount of its 1st PPP loan, and can demonstrate 25% of more reduction in gross receipts, typically between an audited comparable 1st, 2nd or 3rd Quarter 2019 vs. an attested comparable 1st, 2nd or 3rd Quarter 2020.
  • For an eligible applicant that wasn?t in business in the 1st, 2nd or 3rd Quarter 2019 (January 1 ? September 30) but was in business in the 4th Quarter 2019 (October 1 ? December 31): it?s allowed to compare the 4th Quarter 2019 vs. the 1st, 2nd or 3rd Quarter 2020.
  • Unforgiven loan amount annual interest only a very low fixed 1%.
  • Loan repayments will be deferred for borrowers who apply for loan forgiveness until SBA remits the borrower’s loan forgiveness amount to the lender.
  • If you, as a borrower, do not apply for loan forgiveness, your loan repayments are deferred for as much as 10 months after the end of the covered loan forgiveness period of either 8 weeks or 24 weeks, whichever is chosen by you.
  • No collateral or personal guarantees required from you.
  • Neither the government nor approved PPP lenders will charge you any fees.
  • Loans issued to you prior to June 5, 2020 have a maturity of two