The brand new CRRSAA created the opportunity for people and you may nonprofits to utilize to have a second PPP loan once they satisfy certain criteria. Another-draw money are more targeted than very first-date PPP funds, also to qualify, people need step one) have previously acquired a good PPP loan and you may made use of the complete matter simply for subscribed spends; 2) features less than three hundred teams; and you may step 3) have experienced a 25% reduction in disgusting receipts through the one or more one-fourth away from 2020 in place of the same quarter off 2019. The maximum financing size getting an extra PPP mortgage is actually $dos mil rather than $ten mil for a primary-date PPP financing. While doing so, the new SBA has established a hub towards next-mark PPP funds that may be beneficial.
For very first-day PPP fund, people and you will nonprofits basically normally demand a max loan amount of 2.five times the typical month-to-month 2019 payroll. Insurance coverage money can also be used in payroll will cost you. The fresh new SBA likewise has written an explainer to own first-date PPP finance you to definitely traces calculations for several brand of companies.
Getting second-mark PPP financing, the maximum amount borrowed is actually determined due to the fact 2.5 times mediocre monthly 2019 otherwise 2020 payroll costs for an excellent maximum away from $dos billion.