At the high level, there is funding for three categories of PPP loans in this legislation:
The PPP loan can be fully forgiven and is non-taxable. For all types of PPP loans, no collateral or personal guarantee is required. For these new loans, any amount not forgiven becomes a loan at 1% for five years.
Eligibility for a "Second Draw" This program is for small businesses, non-profits, sole proprietors, and independent contractors who have exhausted their initial PPP loan. The program will make new loans through March 31, 2021 or until the new funding is exhausted. Eligibility includes:
"Second Draw" Key PPP Updates
How to Apply:
Planning to borrow through the PPP forgivable loan program for the FIRST TIME?
The SBA is giving priority to first time borrowers who apply through community lending institutions, rather than the big banks. PPP applications through the large financial institutions will begin at a later date.