The SBA Paycheck Protection Program (PPP) is a federal loan program that provides assistance to small- and medium-sized businesses impacted by the COVID-19 pandemic. The funds can be used for costs related to payroll and certain other expenses. On December 27, the President signed new relief package legislation that provided additional funding for PPP loans. U.S. Bank is offering First and Second Draw PPP loans to new and existing customers.
First Draw PPP loan
Businesses who did not previously receive a PPP loan will be eligible to apply for a First Draw loan of up to $10 million, using similar criteria from the initial round:
- Businesses and entities in operation on February 15, 2020 (and not permanently closed).
- Small businesses, 501(c)(3) nonprofits, 501(c)(19) veterans’ organizations or tribal business concerns that have fewer than 500 employees or otherwise meet the SBA size standard.
- Businesses in the accommodation and food service sector that employ 500 or fewer employees per physical location.
- Entities such as housing cooperatives, tax-exempt “business league” organizations under Internal Revenue Code section 501(c)(6), news organizations, and destination marketing organizations are now eligible, subject to additional requirements
Second Draw PPP loan
Eligible businesses, similar to those open to First Draw loans, will be able to apply for a Second Draw PPP loan of up to $2 million, provided they:
- Have used or will have used the full amount of their first PPP loan (including any increase, if applicable) prior to disbursement of the second PPP loan.
- Were in operation on February 15, 2020 (and have not permanently closed).
- Employ 300 or fewer employees.
- Can demonstrate at least a 25% reduction in gross receipts in any quarter in 2020 when compared against certain past quarterly results.
Apply online today at usbank.com/ppp.