Ohio Minority Supplier Diversity Council

Paycheck Protection Plan Loan Solutions

Congress and the President have re-authorized the Paycheck Protection Program.  This bill allows eligible businesses to receive a second PPP loan, or their first if one wasn’t taken earlier.  SBA has until January 6th to finalize requirements therefore lenders cannot issue new loans until the rules are set.  You can, however, pre-apply. 

If you intend to seek a new loan, we recommend you apply with First Bank of the Lake, who serviced over $500MM worth of loans in round and whom we have a trusted partnership with. Follow instructions received from them, or click here https: //applyforppp.com/bcf.   Any questions may addressed to PPPSupport@firstbanklake.com.

There’s a lot in the bill, but here are highlights:

Second Draw Highlights:
-Businesses with fewer than 300 employees and a 25% drop in sales in a quarter in 2020 compared to the same quarter in 2019 are eligible for a new PPP loan.
-Second draw loans are capped at $2M.  Like the first draw, loans are 2.5x monthly payroll; 3.5x for restaurants (NAICS 72).
-Draws under $150k should expect an expedited process relying on certifications rather than supporting documents.  

Forgiveness Highlights: 
-Forgiveness expenses now include supplier costs (e.g.: accountants and technology).
-Full tax deductibility of business expenses paid for with PPP funds.
-Covered period for the first draw is extended to March 31, 2021.  Borrowers may choose the end of their forgiveness covered period between 8 and 24 weeks after origination.

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