PPP loans are back for round two. The program, aimed at helping small businesses negatively-affected by COVID-19, will reopen this week. James J. Mulholland, the Assistant Vice President of M&T Bank, the Hoboken Branch, located at 1018 Washington Street, is offering a few tips for business owners to keep in mind regarding the Payment Protection Program {PPP}. Read on for five tips every business owner should know.
The Small Business Administration released new guidance on accessing capital specifically aimed at underrepresented business owners, including women, people of color, and veterans, after widespread criticism that big businesses were favored over small.
New Jersey has a total of 155,851 businesses that received the Paycheck Protection Program loans from the Small Business Administration, according to Federal Pay, all of which are listed on the website with the number of funds they received.
Small businesses that did not receive a PPP loan initially, can begin to apply on Monday, January 11. Those businesses that did receive a loan can apply for a second loan beginning on Wednesday, January 13, provided they meet eligibility requirements.
Read More: The Pre-Registration Link For COVID-19 Vaccine in New Jersey is Live
Five Tips For Business Owners To Know, According to a Hoboken Bank
1. Who is eligible?
- No more than 300 employees
- Have seen a 25% reduction in gross receipts {revenue} in any quarter of 2020 relative to that same quarter in 2019
- Special cases for new businesses formed in 2020 or seasonal businesses {generally still eligible}
2. If I got a loan in the first round, can I get another?
- Yes, if you have or plan to use the full proceeds of that first loan
3. How much money can I get?
- MAX $2 Million
- Generally, 2.5X your average monthly payroll
- 3.5X for certain companies such as accommodations or food service {NAICS Code starts with 72}
4. Where do I apply? What will I need?
- Generally, you will be able to apply through your bank if you have an active account with them at the time the application opens. Ask your local banker if they will be participating
- Will need payroll reports, Profit & Loss statements or tax returns/filings {for proof of loss in revenue}, Schedule C, or 1099 for self-employed proof of income. Other documentation may be needed depending on the situation
5. My business doesn’t have employees/I work for myself/I am a sole proprietor or contractor, do I qualify?
- Yes, you may still qualify depending on how you pay yourself/file income. Check with your local resources and ask your banker or SBA specialist for more information.
M&T Bank will also be hosting a webinar this week regarding PPP loans. Stay tuned to our events guide for more info!
