CommunityWorks will participate in the next round of Cares Act Paycheck Protection Program funding.
Updated January 6, 2021
On December 27, A new coronavirus relief act was signed into law which includes additional PPP funding to help small businesses negatively impacted by COVID-19. As we await additional details from the SBA, we’ve compiled what we know so far. Stay tuned for more information.
CommunityWorks will participate in the next round of PPP funding
You may receive Paycheck Protection Program funding if:
- If you have not previously taken a PPP loan: You will be able to apply for a PPP loan using PPP loan criteria and terms from previous funding rounds (e.g. up to 500 employees, loans amounts up to $10 million).
- If you want a second PPP loan: “Second draw” PPP loans, have new eligibility requirements intended to assist smaller businesses. Generally, businesses that have 300 employees or fewer and have experienced at least a 25% reduction in gross revenue compared to 2019 are eligible to apply. Loan amounts are equal to 2.5 times monthly payroll up to $2 million. Certain industries, such as hotels and restaurants (or all NAICS codes starting with 72), can request loan amounts equal to 3.5 times monthly payroll up to $2 million. We expect more details soon from the SBA explaining this option as well.
Eligible expenditures of PPP loan funds
Eligible expenses are still 60% payroll and 40% non-payroll. In this round of funding, though, eligible non-payroll expenses have been expanded to include certain business software or cloud computing services, uninsured property damage costs from public disturbances during 2020, supplier costs, and worker protection expenditures.
Update to Economic Injury Disaster Loan (EIDL) Advance
The law provides that EIDL loan advances will no longer be deducted from PPP loan forgiveness. If you have already completed forgiveness of your PPP loan, the law states you must be retroactively made whole. If you are a CommunityWorks PPP customer in this situation we will be in contact with you once we know more.
Updates to PPP Forgiveness
For current CommunityWorks PPP customers, we will pause accepting new PPP loan forgiveness applications until February 2021. This will allow us to apply SBA rule changes to our loan forgiveness process. Find additional updates about PPP forgiveness below.
A simplified application for loans of $150,000 or less.
This is likely coming later in January. It will be a one-page application. It could be similar to the simplified application online right now for loans of $50,000 or less.
No reductions for EIDL advances
This is effective immediately and retroactive for loans that have already been forgiven. If you took an EIDL advance, that amount will no longer be deducted from your forgiveness amount. If you took an EIDL advance and your loan has already been forgiven, the government will send us an additional payment to increase your forgiveness amount.
The SBA has until January 13 to share the complete rules regarding PPP funding requests.
We expect demand to be high. We know that, per the law, the PPP program will end on March 31 and all loan applications must be approved by the SBA on this date if funds remain.