Paycheck Protection Program
To Our Valued Customers:
On December 27, 2020, the United States Congress approved $284.52 billion to continue the Paycheck Protection Program (“PPP”). This round will offer loans to both first time borrowers as well as returning borrowers who had previously received a PPP loan. The Small Business Administration (“SBA”) is currently working on the final rules and guidance for the program.
As soon as the SBA issues its final rules, a link on our website will be activated for you to apply.
For now, below are some highlights of the new program (subject to change as the SBA continues to develop final rules):
- Both new and returning borrowers may be eligible
- To be eligible, the business must have been in operation since February 15, 2020
- Maximum loan amount for this round is $2,000,000 and remains based on a formula of 2.5x average monthly payroll, however, for some industries (e.g., hotels, restaurants, caterers) that multiple will be 3.5x average monthly payroll
- Second time borrowers may be eligible if they have:
- fewer than 300 employees,
- sustained a 25% drop in revenue in at least any one quarter in 2020 vs. the same quarter in 2019, e.g., 2Q 2020 revenues were at least 25% lower than 2Q 2019, and
- used all original PPP loan proceeds
- List of eligible expenses has been expanded
- Borrowers may choose the length of their forgiveness covered period ranging from eight- to 24-weeks from their loan origination date
We look forward to facilitating your PPP loan request and thank you for placing your trust in CFSB.