Additional loans are available up to $2 million each, for previous PPP recipients, provided they meet these 3 criteria:
- Have no more than 300 employees.
- Used up all prior funds.
- Show a gross revenue decline in any quarter of 25% over the prior year’s quarter.
First Time PPP Borrowers
PPP2 will also permit loans to first-time borrowers of up to $2 million (it was $10 million in the first PPP program). Eligible small business borrowers must fall into one of the following groups:
- Have no more than 500 employees and meet eligibility for SBA 7(a) loans.
- Sole proprietors, independent contractors, and eligible self-employed individuals.
EIDL Loans and Low Income Set Asides
More Economic Injury Disaster Loans (EIDL) are being made available as are set asides for businesses in minority and low income communities.
SBA, in consultation with the U.S. Treasury Department, will open the Paycheck Protection Program loan portal on Monday, January 11, 2021 at 9 am ET. When the PPP loan portal system opens, it will initially accept First Draw PPP loan applications from participating CFIs, which include Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), Certified Development Companies (CDCs), and Microloan Intermediaries.
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses.
- PPP loans have an interest rate of 1%.
- Loans issued prior to June 5 have a maturity of 2 years. Loans issued after June 5 have a maturity of 5 years.
- Loan payments will be deferred for borrowers who apply for loan forgiveness until SBA remits the borrower's loan forgiveness amount to the lender. If a borrower does not apply for loan forgiveness, payments are deferred 10 months after the end of the covered period for the borrower’s loan forgiveness (either 8 weeks or 24 weeks).
- No collateral or personal guarantees are required.
- Neither the government nor lenders will charge small businesses any fees.
How To Apply
You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.
If you wish to begin preparing your application, you can download the following PPP borrower application forms to see the information that will be requested from you when you apply with a lender:
- Paycheck Protection Program First Draw Borrower Application Form (revised 01-08-21)
- Paycheck Protection Program Second Draw Borrower Application Form (01-08-21)
- Top-line Overview of PPP First Draw Loans
- Top-line Overview of PPP Second Draw Loans
- Frequently Asked Questions for Lenders and Borrowers (12-09-20)
- How to Calculate Loan Amounts (06-26-20)
- Frequently Asked Questions for Faith-Based Organizations Participating in the Paycheck Protection Program and Economic Injury Disaster Loan Program
- PPP Myth vs. Fact
The Nav CARES Act Calculator helps business owners estimate their potential PPP loan amount so they can apply with confidence. Powered by decades of business lending expertise and technology, the calculator helps simplify the complexity of a government program to make it easy for business owners to understand how much they may qualify for with SBA lenders. CLICK HERE TO USE CALCULATOR