The Paycheck Protection Program will be reopening for all applicants this coming Tuesday, January 19, 2021. You will have until March 31, 2021 or until funds run out to apply for a PPP loan.

Please contact your bank immediately. Do not wait. The PPP budget for this round of applications is limited. Organizations will need to apply right away to ensure that they receive all potential funding. We want to ensure the financial wellbeing of our community’s nonprofits, masaajid, and businesses.

Small Business Paycheck Protection Program

The Paycheck Protection Program provides eligible small entities (defined as 500 or fewer employees, with some industry exceptions) with the funds to retain their employees and other eligible expenses. Eligible expenses include: payroll costs, healthcare costs, mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations. The SBA is accepting applications for both First Draw PPP Loans as well as Second Draw PPP Loans.

First Draw vs. Second Draw PPP Loans

1) First Draw PPP Loan Application
Borrowers should apply for a First Draw PPP Loan if they have not previously applied for a PPP loan. Existing PPP borrowers that did not receive loan forgiveness by December 27, 2020 may: (1) reapply for a First Draw PPP Loan if they previously returned some or all of their First Draw PPP Loan funds, or (2) under certain circumstances, request to modify their First Draw PPP Loan amount if they previously did not accept the full amount for which they are eligible.

2) Second Draw PPP Loan Application
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:

– Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;

– Has no more than 300 employees; and

– Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

Maximum Loan Amounts

For most borrowers, the maximum loan amount is 2.5x average monthly 2019 or 2020 payroll and benefits costs, including retirement and healthcare, up to $2 million. For borrowers in the Accommodation and Food Services sector, the maximum loan amount is 3.5x average monthly 2019 or 2020 payroll and benefits costs, including retirement and healthcare, up to $2 million.

How to Apply

You can apply for either a First Draw or Second Draw PPP Loan through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating, listed here.

Contact your bank as soon as possible. You can prepare your application materials using the following links First Draw PPP Loan Application and Second Draw PPP Loan Application.

Loan Forgiveness

PPP Loans will be fully forgiven if the borrower meet ALL of the following criteria:  

– Employee and compensation levels are maintained;

– The loan proceeds are spent on payroll costs and other eligible expenses;

– At least 60 percent of the proceeds are spent on payroll costs.

A borrower can apply for forgiveness once all loan proceeds for which the borrower is requesting forgiveness have been used. Borrowers can apply for forgiveness any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred, and borrowers will begin making loan payments to their PPP lender. For more details, click here.

We strongly encourage our community to prepare your applications now and apply as soon as possible after January 19th.

If you have further questions about your entity’s eligibility for PPP Loans, please visit the SBA website or contact CAIR-Ohio here. Visit our page for other COVID-19 related updates.