Legislation has passed that extends the deadline for businesses to apply for a PPP loan through May 31, 2021. All applications must be submitted no later than May 31 so that SBA will process loan applications through June 30.
New applications – First-Time PPP Loan Borrowers
First-time borrowers can have no more than 500 employees or fewer or more for certain business types for specific SBA size standards. In addition, accommodations and foodservice companies with NAICS code 72 can have no more than 500 employees per physical location.
SBA has notified all potential applicants that a loan can be up to 2.5 times the business’s average monthly payroll costs.
For Second-Time PPP Loan Borrowers
Second-time borrowers, in general, can have no more than 300-employees and the same applies for accommodations and foodservice with NAICS code 72 per location. The loan can be up to 2.5 the business’s average monthly payroll costs for first-time borrowers. However, the loan maximum is $2 million, as opposed to $10 million for first-time borrowers.
In addition, some SBA restrictions have been lifted for potential applicants with non-fraud felony convictions and past-due student loans. Recent SBA changes eliminate restrictions and help open the door to PPP loans for Business Owners with prior non-financial fraud felony convictions and business owners who are delinquent or have defaulted on federal student loans.
The opportunity is here, and it’s happening now. To help you prepare and apply, contact us today by phone at (281) 720-6623 or visit JPGTeam.com to chat with an accounting expert.