Jan 11, 2021
Posted Under: COVID
For those organizations that did not apply for COVID relief through the first round of the Paycheck Protection Program (PPP), a second round begins today.
Key provisions include:
- Borrowers can set the covered period of their PPP loan to be any length between 8 and 24 weeks to best meet their needs
- Loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures
- Eligibility is expanded to include 501(c)(6)s, housing cooperatives, destination marketing organizations, among other types of organizations
- Greater flexibility is provided for seasonal employees
- Certain existing PPP borrowers can request to modify their first draw PPP loan amount
- Certain existing PPP borrowers are now eligible to apply for a second draw PPP Loan.
A borrower is generally eligible for a second draw PPP loan if the borrower:
- Previously received a first draw loan and will or has used the full amount only for authorized uses
- Has no more than 300 employees
- Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
More information is available from the SBA:
National Council of Nonprofits Nonprofit Town Hall – Wednesday, January 13
This webinar will provide additional information on the new law. Learn about provisions that will expire in just a few weeks and others that will last only a few months. Find out, too, which provisions will help your nonprofit, and what you need to do to take advantage of them. The webinar is free. Register here.
Stay tuned for an announcement for a Foraker webinar covering Alaska-based PPP information for nonprofits. As always, contact us if you have questions.