Official announcement! The second round of PPP rules are released: applications are closed on March 3 this year!


Catering boss must read the blue words above

Yesterday, the SBA of the US Federal Administration for Small and Medium Enterprises released the detailed rules for the second round of PPP within 10 days after the signing of the new economic stimulus bill.Mein Kao Jun brings interpretation to all catering owners in the first time, You can also click at the end of the articleRead original, Check the official rules.


application time


The last day for the second round of applications and obtaining PPP loans is March 2021, 3.All loans will be processed by authorized lenders.However, the specific open application time is determined by the lender. Please pay close attention to the latest news from your lender.


Like last year’s first round of PPP loans, the second round of PPP funding is also limited: a total of $2840 billion.Last year, the first round of PPP loans amounted to 3490 billion U.S. dollars, but they were disbursed within two weeks; Congress subsequently allocated 3200 billion U.S. dollars.The current regulations are much better than then,Therefore, some experts predict that the second round of PPP will go faster.



If you are eligible, please start organizing the documents as soon as possible and contact your lender.


Qualification requirements


To qualify for the second PPP loan, you must meet:


  • You are a business, independent contractor, qualified self-employed, sole proprietor, non-profit organization, qualified for the first PPP loan, veteran organization, Indian tribe business relationship organization, housing cooperative, small agricultural cooperative, qualified Qualified 501(c)(6) organization or non-profit news organization;


  • 300 employees or less, Unless your company’s NAICS code starts with 72 or is a qualified news organization with multiple physical locations;


  • Compared with 2019, revenue in 2020 has decreased by 25% or more;
  • If you have received the first PPP loan, you need to have used up the first or planned to use up before the second loan is issued;

Income must be reduced by 25% or more

Unlike the first round of PPP loans,Small businesses must prove that their income has fallen by 25% or more this year before they can apply for the second round of PPP loans. 

You can compare the total revenue of a certain quarter in 2020 with the same period in 2019 : For example, a borrower has a total income of $2019 in the second quarter of 50,000 and a total income of $2020 in the second quarter of 30,000. Revenues decreased by 2020% between the second quarter of 40, so they are eligible for a second PPP loan.

or,If you are operating in all four quarters of 2019, your annual income will be reduced by 2020% or more in 2019 compared to 25, and you can also qualify.

forCompanies that did not start operations in the first, second or third quarters of 2019 but operated in the fourth quarter, Your total income in the first, second, third or fourth quarter of 2020, as long as it is at least 2019% less than the fourth quarter of 25, you can also apply.

If you are not operating at all in 2019, but are operating before February 2020, 2,And the total income in the second, third or fourth quarter of 2020 has decreased by 2020% compared with the first quarter of 25, which is also eligible for application.

Loan amount

The upper limit of the second round of PPP loans is$ 200 million, The loan amount that a small business can apply for depends on the businessMultiply the average monthly salary in 2019 by 2.5 times.In other words, PPP loans are designed to fund small businesses’ salary expenditures for 2.5 months.In the relative time period for calculating wage costs,You can use the 2020 calendar year or the 2019 calendar year.

The new bill for businessesNAICS codes start with 72 (mostlyRestaurants and food companies) have opened a special case to provide the catering industry with loans with an average monthly salary of 3.5 months.

Waiver of application

The conditions of the second round of PPP loans are similar to the first round of loans, including but not limited to:SBA guarantees 100% loans,No mortgage required,No personal guarantee, non-exempt part1% interest rate,The term is five years.For small businesses with less than US$15 in PPP loans in this round, the application for exemption will also be simplified to less than one page.

For more information about PPP loans, please pay attention to [North American Meal Test News] and read our previous articles!

Reference:

https://www.forbes.com/sites/brianthompson1/2021/01/07/second-draw-ppp-loan-regulations-are-out-what-you-need-to-know/?sh=3ddcd3913748

*Disclaimer: This article strives to ensure that the information provided is accurate, but does not guarantee the accuracy, completeness and timeliness of such information, does not constitute any legal, accounting, tax or other professional advice, and is only for transmission and reference.


About "North American Meal Exam News"

"North American Meal Exam News" is the sister number of the North American head gastronomy new media "Eating Food Team". It aims to serve North American Chinese food and beverage practitioners and is committed to building a professional service platform for the North American food and beverage industry. We hope to promote the two-way exchange of Chinese and American catering culture, support Chinese food to go overseas, and serve overseas brands in China.

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