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What The Stimulus Package Says About The New PPP Loans Coming Out In 2021

    Chris Motola
  • UPDATED

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Chris Motola

Chris Motola

Expert Analyst & Reviewer at Merchant Maverick
An expert in personal and business loans and financial health, Chris Motola has been writing about small business finance and payments for over 5 years. He has been cited in various industry publications, including Forbes Advisor, GoBankingRates, and Medium. Chris is a graduate of the University of Central Florida.
Chris Motola
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8 Comments

Responses are not provided or commissioned by the vendor or bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the vendor or bank advertiser. It is not the vendor or bank advertiser's responsibility to ensure all posts and/or questions are answered.

    Melanie McDowell

    In the first round I did not have employees, as such, they were on 1099s.. Because of that, I believe I was denied PPP. Now the situation has changed, [I had to restructure my services] and I have employees as of September 2020.

    Will the old rule apply [that I had to have “employees” back in the first round]? Or will my case be reviewed and I will be eligible for round 2? [with “employees”]

    I cannot reach the lender I had applied with for the first round. They do not return my calls.

      This comment refers to an earlier version of this post and may be outdated.

      Jessica Dinsmore

      Hi Melanie,
      Sole proprietors and self-employed individuals can qualify for PPP loans, so you may have been denied for another reason. That said, there is nothing stopping you from applying now with employees on your payroll, provided you meet the other SBA requirements. You will just have to maintain that headcount to qualify for loan forgiveness.

        This comment refers to an earlier version of this post and may be outdated.

        Branda

        As I read the article I saw that a company may be eligible as long as it does not have more than 300 employees in one physical location, but then further down it also says a business must not have more than 300 employees for the second time PPP – would it still be in one physical location?

        Our company has several physical locations, but when we add all locations the total employees is 345.

        “Businesses With More Than One Location: Businesses with more than one physical location are eligible for funding provided each location has no more than 300 employees.”

        “Businesses must have no more than 300 employees (this condition only applies to second-time PPP borrowers)”

          This comment refers to an earlier version of this post and may be outdated.

          Jessica Dinsmore

          Hi Branda!
          Businesses with more than one physical location are eligible for funding provided each location has no more than 300 employees. (Per location–not combined total) Good luck!

            This comment refers to an earlier version of this post and may be outdated.

            Michael Salibi

            I am applying for PPP in this round for the first time. I was under the impression that I can include the EIDL loan amount in the PPP application. I applied for the EIDL on 03/29/2020 and received the EIDL advance on 04/24/2020 and the rest of the loan on 07/07/2020. Now my lending institution is telling me that I can not include the EIDL in the PPP loan. Is this correct?
            The loan contract states:
            “If Applicant is refinancing an Economic Injury Disaster Loan (EIDL): Add the outstanding amount of an EIDL made between January 31, 2020 and April 3, 2020 to Loan Request as indicated on the form.”
            I did apply, which I consider as made, on 03/29/2020. So can you please clarify this please!!!!!!

              This comment refers to an earlier version of this post and may be outdated.

              Jessica Dinsmore

              Hi Michael,

              Unfortunately, it sounds like you didn’t receive your EIDL within the specified time frame for eligibility.

              If you received an EIDL between January 31, 2020, and April 3, 2020, and you apply for a forgivable Paycheck Protection Program Loan and then refinance your EIDL into the PPP, you can essentially have your EIDL forgiven. Note that if you didn’t receive your EIDL before April 3, this exception doesn’t apply to you. We have a post that explains.

                This comment refers to an earlier version of this post and may be outdated.

                glen

                In requirements, last time you also had to show the net income was positive (single Member LLC) . Is this still the case.

                  This comment refers to an earlier version of this post and may be outdated.

                  Jessica Dinsmore

                  Hi Glen,

                  As far as we are aware that rule has not changed.

                    This comment refers to an earlier version of this post and may be outdated.

                  Comments are closed.

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