On March 30, President Biden signed into law the two-month extension to apply for a Paycheck Protection Program (PPP) loan. As a refresher, the legislation extends PPP through May 31 and allows 501(c)(6) organizations and others more time to pursue a second PPP loan. Further, if eligible organizations apply by May 31, the Small Business Administration will permit lenders an additional 30 days to process and approve any outstanding applications.
Eligibility criteria for a second PPP loan are as follows:
- The applicant received a first PPP loan and will or has used the loan only for authorized uses;
- The applicant employs no more than 300 people; and
- The applicant can demonstrate at least a 25-percent reduction in gross receipts between comparable quarters in 2019 and 2020.
- The maximum loan amount of a second PPP loan is two-and-a-half times the average monthly 2019 or 2020 payroll costs, up to $2 million.
For more information on the PPP program, visit the SBA website here.