Paycheck Protection Program (PPP):
The Paycheck Protection Program has started accepting new applications for both first-time and second-time borrowers.
Small Businesses with fewer than 500 employees, nonprofits, independent contractors, and self-employed individuals are generally eligible for a first time PPP loan to help pay for payroll costs, pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, and other approved costs. The maximum first-time loan is $10 million.
A second loan can be used to cover the same costs as a first-time loan. A borrower is generally eligible for a second PPP loan if the borrower:
- Previously received a first PPP loan and will or has used the full loan amount only for authorized uses before the second loan is disbursed;
- Has no more than 300 employees; and
- Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
The maximum second-time loan is $2 million.