SBA Announces reopening of PPP
loan program for Small Businesses
The U.S. Small Business Administration, in consultation with the U.S. Treasury Department, has re-opened the Paycheck Protection Program (PPP) loan portal today, to all participating PPP lenders to submit First and Second Draw loan applications to SBA
loan program for Small Businesses
The U.S. Small Business Administration, in consultation with the U.S. Treasury Department, has re-opened the Paycheck Protection Program (PPP) loan portal today, to all participating PPP lenders to submit First and Second Draw loan applications to SBA
Paycheck Protection Program Open to All Lenders Jan. 19The U.S. Small Business Administration, in consultation with the U.S. Treasury Department, has re-opened the Paycheck Protection Program (PPP) loan portal today, to all participating PPP lenders to submit First and Second Draw loan applications to SBA.
Additional PPP guidance and resources have been made available at:
Helpful Reminder for This Round of PPP - Make sure the PPP First Draw Loan number is included in the Second Draw PPP Loan application
As part of the Second Draw Borrower application, Applicants must enter the SBA loan number of the First Draw PPP loan (i.e. the loan that was originated in 2020). SBA loan numbers have the following format to help borrowers identify the SBA loan number of their first PPP loan: XXXXXXXX-XX (i.e. eight numbers followed by a dash and then two more numbers). PPP lenders should make SBA loan numbers easily accessible to their borrowers.
Last week, SBA granted dedicated PPP access to Community Financial Institutions (CFIs) which include Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), Certified Development Companies (CDCs), and Microloan Intermediaries as part of the agency’s ongoing efforts to reach underserved and minority small businesses.
Friday, SBA continued its emphasis on reaching smaller lenders and businesses by opening to approximately 5,000 more lenders, including community banks, credit unions, and farm credit institutions. The agency also plans to reserve dedicated service hours for these smaller lenders going forward.
First Draw PPP Loans are for those borrowers who have not received a PPP loan before August 8, 2020. The first round of the PPP, which ran from March to August 2020, was a historic success helping 5.2 million small businesses keep 51 million American workers employed.
Second Draw PPP Loans are for eligible small businesses with 300 employees or less, that previously received a First Draw PPP Loan and will use or have used the full amount only for authorized uses, and that can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020. The maximum amount of a Second Draw PPP loan is $2 million.
Updated PPP Lender forms, guidance, and resources are available at www.sba.gov/ppp and www.treasury.gov.
For continued updates business owners and nonprofit organizations should subscribe to the SBA Utah District Office newsletter at www.sba.gov/offices/district/ut/salt-lake-city and follow on Twitter @SBA_Utah as information will be updated as it changes.
You may contact the Utah District Office at (801) 524-3209 or by email at [email protected]. You may also contact the Rapid Response Team at coronavirus.utah.gov or by phone at 1 (800) 456-7707.
Additional PPP guidance and resources have been made available at:
- How to Calculate Maximum Loan Amounts for First Draw PPP Loans and What Documentation to Provide – By Business Type
- Procedural Notice - PPP Borrower Resubmissions of Loan Forgiveness Applications Using Form 3508S, Lender Notice Responsibilities to PPP Borrowers, and Offset of Remittances to Lender for Lender Debts
- Procedural Notice - Paycheck Protection Program Excess Loan Amount Errors
Helpful Reminder for This Round of PPP - Make sure the PPP First Draw Loan number is included in the Second Draw PPP Loan application
As part of the Second Draw Borrower application, Applicants must enter the SBA loan number of the First Draw PPP loan (i.e. the loan that was originated in 2020). SBA loan numbers have the following format to help borrowers identify the SBA loan number of their first PPP loan: XXXXXXXX-XX (i.e. eight numbers followed by a dash and then two more numbers). PPP lenders should make SBA loan numbers easily accessible to their borrowers.
Last week, SBA granted dedicated PPP access to Community Financial Institutions (CFIs) which include Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), Certified Development Companies (CDCs), and Microloan Intermediaries as part of the agency’s ongoing efforts to reach underserved and minority small businesses.
Friday, SBA continued its emphasis on reaching smaller lenders and businesses by opening to approximately 5,000 more lenders, including community banks, credit unions, and farm credit institutions. The agency also plans to reserve dedicated service hours for these smaller lenders going forward.
First Draw PPP Loans are for those borrowers who have not received a PPP loan before August 8, 2020. The first round of the PPP, which ran from March to August 2020, was a historic success helping 5.2 million small businesses keep 51 million American workers employed.
Second Draw PPP Loans are for eligible small businesses with 300 employees or less, that previously received a First Draw PPP Loan and will use or have used the full amount only for authorized uses, and that can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020. The maximum amount of a Second Draw PPP loan is $2 million.
Updated PPP Lender forms, guidance, and resources are available at www.sba.gov/ppp and www.treasury.gov.
For continued updates business owners and nonprofit organizations should subscribe to the SBA Utah District Office newsletter at www.sba.gov/offices/district/ut/salt-lake-city and follow on Twitter @SBA_Utah as information will be updated as it changes.
You may contact the Utah District Office at (801) 524-3209 or by email at [email protected]. You may also contact the Rapid Response Team at coronavirus.utah.gov or by phone at 1 (800) 456-7707.
PPP Loan Forgiveness
Paycheck Protection Program (PPP) borrowers may be eligible for loan forgiveness if the funds were used for eligible payroll costs, payments on business mortgage interest payments, rent, or utilities during either the 8- or 24-week period after disbursement. A borrower can apply for forgiveness once it has used all loan proceeds for which the borrower is requesting forgiveness.
Borrowers can apply for forgiveness any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred and borrowers will begin making loan payments to their PPP lender.
Borrowers can apply for forgiveness any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred and borrowers will begin making loan payments to their PPP lender.
Additional PPP Guidance and Forms
The following information is located on www.sba.gov/ppp :
The PPP is intended to provide economic relief to small businesses nationwide adversely impacted by the Coronavirus Disease 2019 (COVID-19). Subsequently, SBA published 23 interim final rules providing additional guidance on the PPP (some of which were jointly issued with the Department of the Treasury) and Treasury published one interim final rule.
The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (Economic Aid Act) (Pub. L. 116-260) became law Dec. 27, 2021. The Economic Aid Act extends the authority to make PPP loans through March 31, 2021 and revises certain PPP requirements.
For ease of borrower and lender reference, this interim final rule also consolidates the interim final rules (and important guidance) issued to date governing borrower eligibility, lender eligibility, and PPP application and origination requirements for new PPP loans, as well as provides general rules relating to loan increases and loan forgiveness.
Please access the following links for policy guidance on the new round of PPP loans as authorized by the recently passed stimulus bill.
Updated First Draw Forms
Second Draw Forms
Guidance & Resources
SBA Procedural Notice 5000-20074 - Modifications to SBA Forms 3506, 3507, and 750 CA (for purposes of PPP only)
SBA Procedural Notice 5000-20075 - Repeal of EIDL Advance Deduction Requirement for SBA Loan Forgiveness Remittances to PPP Lenders
Reminder:
Per the Economic Aid Act, a Community Financial Institution (CFI) is one of the four types of lenders.
Correction:
Eligibility has been expanded to include 501(c)(6)s, housing cooperatives, destination marketing organizations, among other types of organizations; not direct marketing organizations as previously stated.
Further information and background is contained lower in this newsletter.
For continued updates business owners and nonprofit organizations should subscribe to the SBA Utah District Office newsletter at www.sba.gov/offices/district/ut/salt-lake-city and follow on Twitter @SBA_Utah as information will be updated as it changes.
You may contact the Utah District Office at (801) 524-3209 or by email at [email protected].
You may also contact the Rapid Response Team at coronavirus.utah.gov or by phone at 1 (800) 456-7707.
The PPP is intended to provide economic relief to small businesses nationwide adversely impacted by the Coronavirus Disease 2019 (COVID-19). Subsequently, SBA published 23 interim final rules providing additional guidance on the PPP (some of which were jointly issued with the Department of the Treasury) and Treasury published one interim final rule.
The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (Economic Aid Act) (Pub. L. 116-260) became law Dec. 27, 2021. The Economic Aid Act extends the authority to make PPP loans through March 31, 2021 and revises certain PPP requirements.
For ease of borrower and lender reference, this interim final rule also consolidates the interim final rules (and important guidance) issued to date governing borrower eligibility, lender eligibility, and PPP application and origination requirements for new PPP loans, as well as provides general rules relating to loan increases and loan forgiveness.
Please access the following links for policy guidance on the new round of PPP loans as authorized by the recently passed stimulus bill.
- SBA Guidance on Accessing Capital for Minority, Underserved, Veteran and Women-Owned Business Concerns (Released 1/6/2021)
- Interim Final Rule on Paycheck Protection Program as Amended by Economic Aid Act (Released 1/6/2021)
- Interim Final Rule on Second Draw Loans (Released 1/6/2021)
- Top-line Overview of First Draw PPP
- Top-line Overview of Second Draw PPP
Updated First Draw Forms
Second Draw Forms
- Form 2483-SD – Second Draw Borrower Application
- Form 2484-SD – Second Draw Lender Guaranty Application
Guidance & Resources
SBA Procedural Notice 5000-20074 - Modifications to SBA Forms 3506, 3507, and 750 CA (for purposes of PPP only)
SBA Procedural Notice 5000-20075 - Repeal of EIDL Advance Deduction Requirement for SBA Loan Forgiveness Remittances to PPP Lenders
Reminder:
Per the Economic Aid Act, a Community Financial Institution (CFI) is one of the four types of lenders.
- Community Financial Development Institution (CDFI)
- Minority Depository Institution (MDI)
- Community Development Corporation (CDC)
- Microlender Intermediary
Correction:
Eligibility has been expanded to include 501(c)(6)s, housing cooperatives, destination marketing organizations, among other types of organizations; not direct marketing organizations as previously stated.
Further information and background is contained lower in this newsletter.
For continued updates business owners and nonprofit organizations should subscribe to the SBA Utah District Office newsletter at www.sba.gov/offices/district/ut/salt-lake-city and follow on Twitter @SBA_Utah as information will be updated as it changes.
You may contact the Utah District Office at (801) 524-3209 or by email at [email protected].
You may also contact the Rapid Response Team at coronavirus.utah.gov or by phone at 1 (800) 456-7707.
Eligible PPP Expenses now deductible
The Treasury Department and the Internal Revenue Service issued guidance today allowing deductions for the payments of eligible expenses when such payments would result (or be expected to result) in the forgiveness of a loan (covered loan) under the Paycheck Protection Program (PPP).
Today’s guidance, Revenue Ruling 2021-02, reflects changes to law contained in the COVID-related Tax Relief Act of 2020, enacted as part of the Consolidated Appropriations Act, 2021 (Act), Public Law 116-260, which was signed into law on Dec. 27, 2020.
The COVID-related Tax Relief Act of 2020 amended the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to say that no deduction is denied, no tax attribute is reduced, and no basis increase is denied by reason of the exclusion from gross income of the forgiveness of an eligible recipient’s covered loan. This change applies for taxable years ending after March 27, 2020.
Revenue Ruling 2021-02 obsoletes Notice 2020-32 and Revenue Ruling 2020-27. This obsoleted guidance disallowed deductions for the payment of eligible expenses when the payments resulted (or could be expected to result) in forgiveness of a covered loan.
For more information about this, the COVID-related Tax Relief Act of 2020, and other tax changes, visit IRS.gov.
Today’s guidance, Revenue Ruling 2021-02, reflects changes to law contained in the COVID-related Tax Relief Act of 2020, enacted as part of the Consolidated Appropriations Act, 2021 (Act), Public Law 116-260, which was signed into law on Dec. 27, 2020.
The COVID-related Tax Relief Act of 2020 amended the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to say that no deduction is denied, no tax attribute is reduced, and no basis increase is denied by reason of the exclusion from gross income of the forgiveness of an eligible recipient’s covered loan. This change applies for taxable years ending after March 27, 2020.
Revenue Ruling 2021-02 obsoletes Notice 2020-32 and Revenue Ruling 2020-27. This obsoleted guidance disallowed deductions for the payment of eligible expenses when the payments resulted (or could be expected to result) in forgiveness of a covered loan.
For more information about this, the COVID-related Tax Relief Act of 2020, and other tax changes, visit IRS.gov.
SBA Disaster Loans (EIDL)
SBA offers Economic Injury Disaster Loans to small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations of any size to help meet working capital needs caused by the disaster. Economic injury assistance is available regardless of whether the business suffered any property damage. The deadline to apply for an SBA economic injury disaster loan is July 27, 2021.
Disaster loans up to $200,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for up to $40,000 to repair or replace damaged or destroyed personal property.
Interest rates can be as low as 3 percent for businesses, 2.75 percent for private nonprofit organizations and 1.188 percent for homeowners and renters with terms up to 30 years. Loan amounts and terms are set by SBA and are based on each applicant’s financial condition.
Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloanassistance.sba.gov/. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email [email protected] for more information on SBA disaster assistance. Individuals who are deaf or hard‑of‑hearing may call (800) 877-8339. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
Disaster loans up to $200,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for up to $40,000 to repair or replace damaged or destroyed personal property.
Interest rates can be as low as 3 percent for businesses, 2.75 percent for private nonprofit organizations and 1.188 percent for homeowners and renters with terms up to 30 years. Loan amounts and terms are set by SBA and are based on each applicant’s financial condition.
Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloanassistance.sba.gov/. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email [email protected] for more information on SBA disaster assistance. Individuals who are deaf or hard‑of‑hearing may call (800) 877-8339. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
Check out the CARES Act loan calculator here:
https://www.nav.com/cares-act-sba-loan-calculator/?utm_source=internal&utm_medium=email&utm_campaign=202042sbdc_advisor
https://www.nav.com/cares-act-sba-loan-calculator/?utm_source=internal&utm_medium=email&utm_campaign=202042sbdc_advisor