The Payment Protection Program (PPP) has been extended! This is great news if you do business in Alamo, Texas! You can now apply for a PPP loan until May 31st, meaning that businesses that received previous funds may now apply for a second-draw loan. The Small Business Association (SBA), which oversees the PPP, will have until June 30th to review and process all applications.
For those unfamiliar with the PPP, it incentivizes small businesses to keep workers on their payroll. The program was reopened in January 2021 and over $700 billion in PPP funds have been approved for over eight million applicants! Below is more info.
Is My Business Eligible?
If your business was negatively affected by COVID-19, then it can apply for a PPP loan if it meets the following guidelines:
- The owner must be an independent contractor, sole proprietor, or self-employed.
- The company must have 500 or less employees or more than one location with less than 500 employees at each branch.
- It’s a veteran’s organization.
- It’s a nonprofit organization.
- It’s a tribal business.
Requesting additional funds through the SBA is possible with second-draw PPP loans as long as:
- The company can demonstrate at least a 25% loss in gross receipts between comparable quarters in 2019 and 2020.
- Has less than 300 employees.
- Has received a first-draw PPP loan and used or will use the full amount for authorized purposes.
PPP Loan Forgiveness
Because the PPP has a provision for companies to make their loans forgivable, over two million PPP loans were forgiven, and hundreds of thousands are under review!
Here’s how first-draw borrowers can have their loans forgiven:
- Employee and compensation levels must be maintained.
- At least 60% of the PPP loan must be spent on payroll costs.
- The remaining PPP loan must be used on authorized expenses.
Second-time PPP loan borrowers can have their loans forgiven if:
- Their employee and compensation levels are maintained as was required during their first PPP loan.
- At least 60% of the proceeds are spent on payroll costs.
- All funds are spent on authorized expenses.
Help Your Business in Alamo!
The City of Alamo is growing, and your business should grow with it! Economic development near McAllen is booming and Alamo is only a short drive away! Take advantage of the PPP and other loan programs in Alamo by contacting us today!