Biz2Credit announced on Tuesday it has opened applications for anew round of Paycheck Protection Program (PPP) loans. The PPP is part of the $2 trillion CARES Act signed on March 27, 2020, aimed at getting small business owners back on their feet and millions of Americans back to work following the COVID-19 pandemic. The program’s first-round quickly closed and the U.S. Senate passed $484 billion in new pandemic relief funds to provide additional funding to the PPP small business aid program, pay for coronavirus testing, and help hospitals deluged by sick patients during the COVID-19 pandemic. On Sunday evening, President Trump signed a new coronavirus relief and spending package, which combines $900 billion in COVID-19 aid with government funding through September 2021.
Biz2Credit reported that the second round of the PPP sets aside at least $15 billion for first loans issued to truly small businesses with 10 or fewer employees. The program allows for first loans of $250,000 or less issued to entities in low- or moderate-income areas. The new round of the PPP also sets aside at least $25 billion for second loans to entities that meet eligibility criteria.
To qualify for a second PPP loan, organizations would have to:
- Employ 300 or fewer workers (instead of the previous 500-employee threshold).
- Demonstrate that they had at least a 25% reduction in gross revenue during a quarter in 2020 compared with the same period in 2019, with some exceptions.
- Exhaust their first loan before receiving a second one.
Biz2Credit further explained:
“Most eligible borrowers could receive second loans for as much as $2 million or 2.5 times their average monthly payroll costs, whichever is less. Restaurants and hospitality businesses could receive the lesser of $2 million or 3.5 times their average monthly payroll costs.”
Speaking about re-opening applications, Rohit Arora, CEO of Biz2Credit, stated:
“If your business has been harmed by the coronavirus pandemic, you can get financial assistance from lenders approved by the government. Biz2Credit is offering support for companies that need since we are one of the few FinTech companies approved for the program. We are ready to help small businesses get PPP funding as quickly as possible when the applications for the second PPP round open. Even if a firm was denied loan during the first round of the program or secured financing from another source during the PPP’s first round, we’re ready to provide assistance.”
Biz2Credit added it has already begun taking ‘pre-application’ for the new round of the PPP. Small business owners can fill out an application online now, and the platform will be ready to submit to the SBA as soon as the program opens.