The Small Business Administration (SBA) is offering first draw and second draw Personal Protection Program loans until March 31 as part of the continued federal relief provided due to COVID-19. A business qualifies for a PPP loan if it has no more than 300 employees and can demonstrate at least a 25% reduction in gross receipts between any one of comparable quarters in 2019 and 2020. Eligibility also depends on the business’s gross income. Originally the PPP eligibility depended on the business’s net income. This change may make more businesses eligible. The loan may be used for payroll costs, including benefits, and to pay interest on mortgages, rent and utilities. Loans will be fully forgiven when employees are kept on the payroll.

A business may apply for a second draw loan only if it has received and used a first draw loan initially offered last spring. However, if the business did not apply for a first draw loan or was not eligible at that time, it may apply for the initial first draw loan at this time until March 31.

Many financial institutions are SBA lenders, and the best source of information is the lender. If you are unsure of who your SBA lender is, check the SBA website. More information from the SBA may be found here.