Second round of PPP loans: What you need to know
LINCOLN, Neb. (KOLN) - With the new year, comes a new round of support for struggling local businesses. But this time, there are some stricter rules when it comes to getting a PPP loan.
The COVID-19 relief bill signed by President Donald Trump consists of $285 billion available for the Paycheck Protection Program.
10/11 NOW looked into how local businesses can get help.
For the first two days, only loan applications from community financial institutions will be accepted.
The vice president of UBT told 10/11 NOW, they expect to be able to start taking applications for first draw loans on Wednesday and second draw loans on Friday.
The first draw, is for businesses that have not yet received money from a PPP loan.
“They have to have less than 500 employees… have to be a small business,” said district director for US. Small Business Administration, Leon Milobar.
To qualify for a second draw loan, meaning you’re hoping to get additional funds, you must have to prove three things: you were in business before Feb. 2020, you have fewer than 300 employees and your income dipped 25% or more.
“You’ve got to show the reduction in revenue and we think there are certainly clients out there that have been impacted and can easily show that,” said UBT vice president, T.J. Casady.
Previously, loans were capped at $10 million. Now, the most a business can receive is $2 million. But, they can choose when it’s used.
“Now we let the owner of the business decide anywhere from eight weeks to 24 weeks how they are going to use all of the money,” said Milobar.
During the first round, UBT was able to help more than 3,000 people get access.
This time, they’re told there is plenty of money to go around.
“It think it is going to take a different approach, and it won’t be quite the mad dash as it was in the first round,” said Casady.
The loans can now also be used for safety upgrades or to fix any destruction.
You have until March 31st to get that application in.
Copyright 2021 KOLN. All rights reserved.