Second round of PPP loans available
The U.S. Small Business Administration said it will reopen the Paycheck Protection loan portal to eligible lenders with $1 billion or less in assets today for first and second-draw applications.
The SBA loan portal will be open fully Tuesday.
The government loans are for eligible small businesses that have received a PPP loan and have fewer than 300 employees. Businesses must be able to show a 25% decline in gross receipts between comparable quarters last year and in 2019.
“A second round of PPP could not have come at a better time and the SBA is making every effort to ensure small businesses have the emergency financial support they need to continue weathering this time of uncertainty,” SBA Administrator Jovita Carranza said in a statement.
The loans carry an interest rate of 1%. Payments can be deferred for borrowers who apply for loan forgiveness until the SBA remits the loan amount to the lender. If a borrower does not apply for loan forgiveness, payments are deferred for 10 months after the end of the covered period — either eight or 24 weeks. And lastly, no collateral or personal guarantees are required.
The maximum second loan amount for most businesses is $2 million at 2.5 times their average monthly payroll costs.
During the first PPP round of loans, more than 15,700 small businesses in West Virginia received loans totaling $1.837 billion, with $485.85 million disbursed during the second round ranking the state 42nd out of 50 states in the amount received. That version of the SBA PPP ended June 30, 2020.