IMPORTANT - PPP Available Beginning January 11th

August 2020

Second Round of the Paycheck Protection Program (PPP) Starts January 11th

Key Updates to the PPP Make it Accessible to

More Organizations!

The #PaycheckProtection Program will re-open the week of January 11 for new borrowers and certain existing PPP borrowers.

To promote access to capital, initially only community financial institutions will be able to make First Draw PPP Loans on Monday, January 11, and Second Draw PPP Loans on Wednesday, January 13. The PPP will open to all participating lenders shortly thereafter.

This round of the PPP continues to prioritize millions of Americans employed by small businesses by authorizing up to $284 billion toward 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, direct 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.

𝗔 𝗯𝗼𝗿𝗿𝗼𝘄𝗲𝗿 𝗶𝘀 𝗴𝗲𝗻𝗲𝗿𝗮𝗹𝗹𝘆 𝗲𝗹𝗶𝗴𝗶𝗯𝗹𝗲 𝗳𝗼𝗿 𝗮 𝗦𝗲𝗰𝗼𝗻𝗱 𝗗𝗿𝗮𝘄 𝗣𝗣𝗣 𝗟𝗼𝗮𝗻 𝗶𝗳 𝘁𝗵𝗲 𝗯𝗼𝗿𝗿𝗼𝘄𝗲𝗿:

• Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;

• Has no more than 300 employees; and

• Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

➡️ Learn more: http://ow.ly/d99350D3sT8

How To Prepare to Apply for the Second Round of the PPP

With the announcement of the second round of the PPP, you need to have the following information ready when a new program application opens on January 11th.

If you are eligible, you will most likely need the following for your application:

Basic business and ownership information
Your EIN (Employer Identification Number) or SSN (Social Security Number) or BIN (Business Identification Number)
Company Principals' information
Percentage of ownership
FTE(Full Time Employee) Employment Calculation rounded to nearest whole number (required for all businesses seeking an award based on 3 or more FTE) usually this is IRS Form 941 or Oregon Employment Department Form 132. Have the last four quarters ready if they are needed.
You may need a sales decline verification to show that for a one-month period between March 1, 2020 and November 30, 2020, and for the corresponding period in 2019, one of the following must be provided documenting a 25% or more reduction in sales (e.g. April 2020 and April 2019), you will need one of the following:
Profit and Loss Statements (like periods in 2019 and 2020)
Income Statements (like periods in 2019 and 2020)
Sales Reports (like periods in 2019 and 2020)
Bank Records (like periods in 2019 and 2020) (e.g. bank statements, online banking reports, etc.)
You will need to provide CARES act information if you received a PPP (Paycheck Protection Program) Loan, EIDL (Economic Injury Disaster Loan), or EIDL Advance
Amount you received if you were awarded a State of Oregon COVID-19 Emergency Business grant before
A copy of your drivers license

If you do these things, you be in a better position to apply quickly for funds that are disbursed very quickly.

One last thing: SIGN YOUR FORM AND PROVIDE ALL REQUESTED INFORMATION PRIOR TO SUBMISSION. There have been many businesses who have lost out on help because they went too fast and didn't sign their forms or provide all the requested information!

Please reach out to the Southwestern SBDC at either 541-888-7182 or [email protected] for help and information about completing any grant or loan application!

Get Help from the

Southwestern SBDC

If you would like more information on the subjects in this email or any other help for your business, email us at [email protected] or by clicking the email icon.

We look forward to hearing from you!

Oregon Small Business Development Centers are funded in part through a cooperative agreement with the U.S. Small Business Administration, and by the Oregon Business Development Department.