As a small business owner, the deadline for the Paycheck Protection Program, PPP is May 31, 2021 and until then, pending eligibility, you can apply through a participating lender. If you weren’t aware, eligible borrowers that previously received a PPP loan can apply for a SECOND loan or Second Draw PPP loan.
If you qualify and receive the loan, you can do so with the same general loan terms as your First Draw PPP loan. If it’s been awhile since your First Draw PPP, there are a few key details to remember once you receive your Second Draw PPP loans:
- Be sure you continue to meet all employee retention criteria
- PPP is a loan designed to provide a direct incentive for small business to keep their workers on payroll. Abiding by the criteria set forth from the SBA is a critical part of ensuring you stay on track with the terms given by your lender.
- Use the loan for eligible expenses
- Second Draw PPP loans can be used towards payroll costs including benefits. They can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.
- Continue to keep documentation of all loans, communications, and financial business aspects
- Just as it was important with your First Draw PPP loan, it’s still just as important with your Second Draw PPP loan. In terms of your loan forgiveness, these documents will help prove that the loan was used towards appropriate areas and expenses in your business.
For more information regarding your PPP loan as well as more information and specifics to your life insurance policy, seeking professional help ensures the right answers! For all of your small business needs The Bailey Group is here to assist you. If you have additional questions, feel free to reach out and someone on our team will be happy to help!
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