The CARES Act established the Paycheck Protection Program (PPP) in March 2020 to offer financial assistance to small businesses impacted by the COVID-19 epidemic. Small businesses can use the PPP loan to pay for utilities, rent, mortgage interest, and payroll expenses. However, not all companies are qualified to submit an application for a PPP loan. Who is ineligible for a PPP loan is listed below:
1. Big-business enterprises: PPP loans are intended to support small enterprises, which are those that employ 500 people or less. Except in limited circumstances, companies with more than 500 employees are not eligible for PPP loans.
2. Companies who have already received a PPP loan: Unless they meet certain requirements, companies that have already received a PPP loan are not eligible for a second draw PPP loan. Businesses that weren’t open on February 15, 2020 are ineligible for a PPP loan.
4. Businesses that are engaged in criminal activity. Is it too late for the second draw of the PPP?
Does it Take Eight Weeks to Apply for a Second PPP? You don’t need to wait eight weeks to submit an application for a second PPP loan. To be eligible for a second draw PPP loan, you must first have used the entire amount of your first PPP loan. How Long Will PPP Round 2 Last as a result? The second PPP round will run through May 31, 2021, or until all available funds have been used. $284 billion in investment is available in total for PPP round 2. Will There Be Another Round of Small Business PPP Loans?
Whether there would be another batch of PPP loans for small enterprises has not yet been formally announced. The $1.9 trillion recovery package put out by the Biden administration, however, includes additional money for pandemic-affected small companies. If this new proposal includes more PPP financing is still to be determined.