New guidance was released by the Small Business Administration (SBA) today, including new application forms to be submitted to your financial provider.
These forms come in two varieties – one for first time applicants, and one form for companies that previously received a PPP loan and are applying for a “second draw.”
The deadline for submitting an application is March 31, 2021.The following is from the SBA Website HERE:
Notice: Paycheck Protection Program resumes January 11, 2021 at 9am ET
SBA, in consultation with the U.S. Treasury Department, will open the Paycheck Protection Program loan portal on Monday, January 11, 2021 at 9 am ET. When the PPP loan portal system opens, it will initially accept First Draw PPP loan applications from participating CFIs, which include Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), Certified Development Companies (CDCs), and Microloan Intermediaries.
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses.
- PPP loans have an interest rate of 1%.
- Loans issued prior to June 5 have a maturity of 2 years. Loans issued after June 5 have a maturity of 5 years.
- Loan payments will be deferred for borrowers who apply for loan forgiveness until SBA remits the borrower’s loan forgiveness amount to the lender. If a borrower does not apply for loan forgiveness, payments are deferred 10 months after the end of the covered period for the borrower’s loan forgiveness (either 8 weeks or 24 weeks).
- No collateral or personal guarantees are required.
- Neither the government nor lenders will charge small businesses any fees.
How To Apply
You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.
If you wish to begin preparing your application, you can download the following PPP borrower application forms to see the information that will be requested from you when you apply with a lender:
- Paycheck Protection Program First Draw Borrower Application Form (revised 01-08-21)
- Paycheck Protection Program Second Draw Borrower Application Form (01-08-21)
[These are also linked in the buttons below]
- Top-line Overview of PPP First Draw Loans
- Top-line Overview of PPP Second Draw Loans
- Frequently Asked Questions for Lenders and Borrowers (12-09-20)
- How to Calculate Loan Amounts (06-26-20)
- Frequently Asked Questions for Faith-Based Organizations Participating in the Paycheck Protection Program and Economic Injury Disaster Loan Program
- PPP Myth vs. Fact
Here are direct links to the two applications, for first time borrowers and for those seeking a second draw. Again work with your SBA-approved bank if you have questions and loan procedures may vary slightly from bank to bank. For second-time borrowers, you don’t have to use the same back again for the second draw as your first.