SBA Guidance for 2021 PPP Loans
Posted on January 15, 2021
This week (Jan. 11-15, 2021), the first block of new PPP loans become available to applicants who are using Community Financial Institutions (CFI) as their lending source. Generally, CFIs are local community banks and credit unions. Your bank will know whether it fits the CFI definition and can provide additional guidance. For those who use larger banks, no PPP application date has been announced yet although it is expected soon. The 2021 PPP funds are available to First Draw and Second Draw borrowers as long as the new loan criteria are met. The current deadline for new PPP applications is March 31, 2021.
First Draw borrowers can find an SBA Overview here.
Second Draw borrowers can find the revised SBA application form here.
Second Relief Package and PPP Funds
Posted on December 30, 2020
On December 27, 2020, the Coronavirus Response and Relief Supplemental Appropriations Act, 2021 was signed into law as part of the larger Consolidated Appropriations Act, 2021. The new Coronavirus relief package includes an additional round of $284 billion in Paycheck Protection Program (“PPP”) forgivable loan funds. Official guidance and regulations from the Treasury Department are expected to issue during the first week of January. Businesses who have previously taken PPP loans can request a second draw under revised eligibility conditions. Businesses with no prior PPP loan are also eligible. Here are the primary criteria for new PPP loans:
- Headcount: the borrower must have 300 employees or less.
- Revenue Loss: the borrower must show a decrease in gross revenue of 25% or more between comparable quarters in 2019 and 2020.
- Prior PPP loans: the borrower must show that the full amount of any prior PPP loan has been spent.
- Maximum Loan Amount: PPP loans are capped at 2.5 times average monthly payroll and must not exceed $2 million total.
- Loan Forgiveness: requires a showing that at least 60% of the PPP loan was spent on payroll.
The application process and paperwork can be confusing. We can help. Please contact us if you need assistance during the process.
City of Chicago Emergency Travel Order
Posted on July 13, 2020
According to the City of Chicago, the Chicago Department of Public Health Commissioner has issued an Emergency Travel Order directing travelers entering or returning to Chicago from states experiencing a surge in new COVID-19 cases to quarantine for a 14-day period from the time of last contact within the identified state. This Order went into effect on Monday, July 6. The list of states covered under the Order, at this time, is below:
- North Carolina
- South Carolina
Please don’t hesitate to contact Thorelli & Associates with any questions concerning COVID-19.
SBA Extends Deadline for PPP Applications
Posted on July 8, 2020
President Donald Trump signed a bill re-opening the application window for the Paycheck Protection Program (PPP). The SBA has resumed accepting applications on July 6, 2020 at 9:00am EDT. The new deadline to apply for a Paycheck Protection Program loan is August 8, 2020.
If you haven’t taken advantage of the PPP loan opportunity or aren’t sure whether your company qualifies, please contact us for further information.
We will continue to keep you updated as to the rules and regulations relating to Covid-19. Please do not hesitate to contact us concerning any further questions you may have related to the Paycheck Protection Program, or any other questions concerning the legal aspects of the Covid-19 pandemic’s impact on doing business in the US. We remain open and ready to assist you with all your legal needs, including PPP Applications.
COVID-19 Return To Work
Posted on July 7, 2020
As the US and the rest of the world begin to return to some form of normalcy, businesses are being confronted with issues concerning how to reopen their operations and the policies and procedures that could be necessary in order to maintain safe and healthy working environments for all of its employees, partners, customers, etc. To read more, click here.