New federal legislation, signed into law on December 27, 2020, provides nearly $900 billion in emergency coronavirus relief to families, workers, small businesses and organizations impacted by the health crisis.
This new legislation allows the Small Business Administration (SBA) to authorize a third round of Paycheck Protection Program (PPP) payments. This will include loans up to $284.5 billion in allocated PPP funding.
We are currently reviewing guidance from the SBA regarding specific criteria related to this program as well as changes to forgiveness. As more information becomes available regarding specific requirements and the application process, we stand ready to continue serving our customers during these unprecedented times.
New PPP loans:
According to the legislation, PPP loans may be available to businesses with 500 or fewer employees that have not previously received a PPP loan to help with payroll, rent, utilities, healthcare costs and more.
In addition to providing for new PPP loans for first-time borrowers, the legislation also allows certain existing PPP borrowers to receive a “second draw” PPP loan if they have used all of their first loan (or will have by the time of disbursement of the second loan), have no more than 300 employees, and can demonstrate a year-over-year quarterly revenue reduction of at least 25%.
Preparing for the application process:
Our Oconee State Bank team is awaiting guidance from the federal government regarding documentation requirements for this round of PPP lending, which may include income and/or payroll documents.