NEW YORK, Dec. 29, 2020 (GLOBE NEWSWIRE) -- Now that President Trump has signed the economic stimulus bill into law, companies whose survival depends on a new round of Paycheck Protection Program (PPP) funding, should start preparing to file their applications soon.
There are some critical changes in the PPP that are designed to ensure that truly small businesses and companies owned by minorities or located in economically disadvantaged areas are better served this time around. The package appropriates $284.5 billion in new funds for the SBA to guarantee first and second round loans from the popular program.
The second round of the PPP sets aside at least $15 billion for first loans issued to truly small businesses with 10 or fewer employees. The program allows for first loans of $250,000 or less issued to entities in low- or moderate-income areas. The new round of the PPP also sets aside at least $25 billion for second loans to entities that meet eligibility criteria.
To qualify for a second PPP loan, organizations would have to:
Employ 300 or fewer workers (instead of the previous 500-employee threshold).
Demonstrate that they had at least a 25% reduction in gross revenue during a quarter in 2020 compared with the same period in 2019, with some exceptions.
Exhaust their first loan before receiving a second one.
Most eligible borrowers could receive second loans for as much as $2 million or 2.5 times their average monthly payroll costs, whichever is less. Restaurants and hospitality businesses could receive the lesser of $2 million or 3.5 times their average monthly payroll costs.
Biz2Credit is now taking pre-applications from small businesses
“If your business has been harmed by the coronavirus pandemic, you can get financial assistance from lenders approved by the government,” said Rohit Arora, CEO of Biz2Credit and one of the nation’s leading experts in small business finance. “Biz2Credit is offering support for companies that need since we are one of the few FinTech companies approved for the program.
“We are ready to help small businesses get PPP funding as quickly as possible when the applications for the second PPP round open,” Arora added. “Even if a firm was denied loan during the first round of the program or secured financing from another source during the PPP’s first round, we’re ready to provide assistance.”
Biz2Credit has already begun taking ‘pre-applications’ for the new round of the PPP. Small business owners can fill out an application online now, and Biz2Credit will be ready to submit to the SBA as soon as the program opens.
“This means faster approval times and confidence that your business has the best shot of receiving funds from the program again,” Arora added. “Companies that already got a PPP loan earlier this year may now apply for a second draw, if they qualify, and businesses that didn't receive funding during the initial PPP can now apply for a first draw loan.”
Biz2Credit has continuously worked to simplify the application process for small businesses since PPP was first introduced.
“Our online PPP application is tailor-made to the specifications of the SBA and the Treasury Department and is adaptable as regulations change,” Arora said. “It has become a trusted platform for small business borrowers, their CPA advisors, and lending institutions.”
Founded in 2007, Biz2Credit has arranged more than $3 billion in small business financing. Biz2Credit is focused on funding what’s next for small business. The company leverages data, cash flow insights, and the latest technology to give business owners an automated small business funding platform to fit their financial needs. With over 350 employees globally, the Biz2Credit team – made up of top-notch engineers, marketers, and data scientists – is building the next generation in business lending solutions.
Biz2Credit has been named to the Inc. 5000 and Inc. Magazine’s Private Titans list for 2020, is a three-time winner of the Deloitte Technology Fast 500 and was named a Great Place to Work in 2020 and 2019. Headquartered in New York City, the company recently raised a $52M Series B round of investment in 2019. Visit www.biz2credit.com or Twitter @Biz2Credit, Facebook, and LinkedIn.
Media Contacts: John Mooney, Biz2Credit, (908) 720-6057, firstname.lastname@example.org