PAYCHECK PROTECTION PROGRAM (PPP)
Last Updated: 1/5/2021
The information provided is intended for informational use only and is subject to change.
On December 27, 2020, the President signed into law new legislation expanding the Paycheck Protection Program (PPP) to assist small businesses affected by the COVID-19 pandemic. South Shore Bank will wait for the U.S. Treasury and the Small Business Administration (SBA) to enact rules, guidance and forms implementing the program. Once the program is implemented, businesses will be able to apply for a second PPP loan (or apply for their first PPP loan).
Paycheck Protection Program (PPP) Second Loans
Establishes a new round of PPP loans for eligible businesses. The maximum loan amount for a second loan is $2 million.
- This loan program applies to small businesses with 300 or fewer employees, and a 25% revenue loss in any quarter of 2020 relative to that same quarter in 2019.
- Forgivable expenses have been expanded and include supplier costs, and investments in facility modifications and Personal Protective Equipment (PPE) to operate safely. This is not retroactive to the original, first PPP loan program.
- The full amount of any first PPP loan must be used before a second PPP loan is distributed.
- Some eligible businesses may qualify for more funding due to changes in guidance after they obtained their original loan.
- Eligible businesses who have not yet received a PPP loan may apply under this second loan program.
Paycheck Protection Program (PPP) Loan Forgiveness
The new legislation also simplifies the PPP forgiveness process for loans of $150,000 and less and gives businesses more flexibility on how they use the funds. If you have not yet applied for loan forgiveness, you may want to wait to apply for a second PPP loan as there may be an impact on your ability to obtain additional PPP funding.
For EIDL loans, visit the SBA here.
Should you need additional information, please contact your Loan Officer directly.
Please be alert – scammers attempt to take advantage of PPP programs to perpetuate fraudulent activity. Learn more about COVID-19 scams here.