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The U.S. Small Business Administration (SBA), is vowing to improve the loan review process for the Paycheck Protection Program (PPP) Loans. SBA said it is implementing a process to expedite “first draw” loans, while, also improving the process for “second draw” loans (Customers that received a PPP Loan in 2020). This is in spite of the ongoing investigations in to fraud complaints.
The 2nd round of the PPP authorizes up to $284 billion, aimed at job retention and certain other expenses through March 31, 2021, and by allowing certain existing PPP borrowers to apply for a Second Draw PPP Loan.
Key PPP updates include:
- PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;
- PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
- The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, destination marketing organizations, among other types of organizations;
- The PPP provides greater flexibility for seasonal employees;
- Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and
- Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.
The SBA said that it is working alongside the Biden Administration to identify some solutions to address eligibility, compliance, and integrity, while promoting transparency.
We helped a multitude of businesses qualify for, and obtain a PPP Loan during the first round of funding throughout 2020. Whether you’d like to attempt to qualify for a first round “draw”, or need assistance with documenting the qualifications for a second round “draw”, we are here to assist you. Feel free to contact us with any questions you may have about the PPP. https://brtaxaccountant.com/