The U.S. Small Business Administration (SBA), in consultation with the U.S. Treasury Department, opened the Paycheck Protection Program (PPP) loan portal today — Monday, Jan. 11, 2021 — at 9 a.m. Eastern time. The PPP loan portal system will initially accept First Draw PPP loan applications from participating Corporate Finance Institutes (CFIs), which include Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), Certified Development Companies (CDCs) and Microloan Intermediaries.
Please note: guidelines have changed this go-round. Loans are limited to business owners with 300 or fewer employees instead of 500. To qualify, applicants must also show a revenue reduction of 25% (gross receipts). The guidelines are clear that this reduction needs to compare the same time frame in 2020 as 2019. For example, Q1 2020 vs. Q1 2019, or the entire year of 2020 vs. 2019.
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Call it PPP federal rescue loans, Version 2.
For design and construction firms still struggling with the economic uncertainties brought on by the COVID-19 pandemic, the rules of the federal Paycheck Protection Program will be clearer in its revision.
The loans are covered by a federal year-end legislative package that provides funding for a $284.6-billion second draw.
After Congress pushed through the initial $659-billion forgivable loan program in April with limited details, many construction companies grew frustrated as the guidance trolled out over the following months, including some onerous provisions, says Jimmy Christianson, vice president of government relations at Associated General Contractors of America.
But after nearly eight months of working through the program, he says the new effort will offer a lot more clarity about the application process. Click here to read the entire article.