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How can i assess the maximum amount getting my personal PPP financing?

How can i assess the maximum amount getting my personal PPP financing?

The brand new CRRSAA developed the chance for people and you may nonprofits to put on to have a moment PPP financing once they satisfy specific criteria. The second-draw loans become more directed than earliest-date PPP finance, and qualify, organizations must 1) have previously received a good PPP financing and payday loans in Colorado you will utilized the full count simply for licensed spends; 2) provides fewer than three hundred personnel; and you can 3) have acquired a twenty-five% losing gross receipts through the one quarter out-of 2020 in the place of an equivalent quarter from 2019. The utmost loan size for another PPP loan was $dos mil rather than $10 mil for a primary-time PPP mortgage. On top of that, the latest SBA has established a center on second-draw PPP loans that can easily be of use.

To possess first-go out PPP money, people and you may nonprofits basically is request a maximum amount borrowed out of 2.five times the typical monthly 2019 payroll. Insurance rates repayments can used in payroll will set you back. The fresh new SBA also has composed a keen explainer to possess first-date PPP financing you to definitely traces calculations for various variety of enterprises.

Having next-mark PPP fund, the most amount borrowed is determined given that 2.5 times average monthly 2019 otherwise 2020 payroll charges for an excellent maximum out of $2 mil. Getting borrowers about hotel and you may eating sectors, they could be considered to use a top formula of step three.5 times average monthly 2019 or 2020 payroll costs, nevertheless the maximum amount stays at the $2 mil. Manage an enthusiastic accountant otherwise monetary advisor to make sure you assess the borrowed funds amount correctly.

Significantly, in the , this new SBA altered maximum loan proportions just owners and independent contractors can apply getting, basing they into the revenues as opposed to net income.