Congress and the President have acted to extend the Payroll Protection Program (PPP) for an additional 5 weeks, with new applications being accepted until August 8, 2020. There are approximately $129 billion in PPP approved funding remaining for businesses impacted by COVID-19 related economic interruptions.
Can I apply for another PPP loan with this extension?
Borrowers that correctly completed the first application cannot apply for an additional loan. There may be another stimulus loan program in the future months. Congress is currently working through several different plans. But, the next program will likely be much more targeted than the PPP loan program. We are anticipating additional restrictions to qualify for these loans, such as proof of loss revenues or operating within specific industries.
Can I apply for additional loan funds if I did not receive the full amount with the first application?
There were many changes in the calculation of the eligible loan amounts as this program developed in April and May. If you are self-employed, a partner in a partnership or a seasonal employer your initial loan amount may have been less than the fully allowed amount. The SBA has authorized lenders to disburse additional amounts for loans meeting certain criteria. Contact your lender to determine if your loan amount was less than the eligible amount and if you are eligible to receive additional disbursements.
Also, the SBA has clarified that certain fishing boat owners who compensate their crew members on Box 5 of Form 1099-MISC may include these payments as payroll to determine an eligible loan amount. Fishing boat owners may be able to apply for additional PPP loan funds. Contact your lender to determine if you are eligible.
Visit http://www.mwcpa.com/ for all of our PPP resources including the most recent PPP forgiveness applications, loan forgiveness calculators, FAQs and our past client communications.