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PPP eligibility and next steps

By Madison Parry

The COVID-19 relief bill signed into law this week will dole out $285 billion to small businesses through the PPP. Businesses with an existing loan are eligible for an increase as well as many other small businesses by taking the proper steps.

With more funding on the way, many businesses may be unsure of their eligibility and the required steps to apply.

Approved last week by the House and signed by President Trump on Sunday, the newest COVID-19 relief bill authorizes about $285 billion for another round of the Paycheck Protection Program (PPP).

Funding will be distributed through the Small Business Administration’s network of lenders and will only go to small businesses with less than 300 employees per physical location.

Businesses must also be able to prove how they have been negatively impacted by COVID-19 in order to be eligible.

The criteria used to determine this is if a business can show they have revenue declines of more than 25 percent in any given quarter this year compared to last year, according to Small Biz Ahead, a blog from Connecticut-based financial services company, The Hartford.

The blog details many questions businesses may have surrounding eligibility for funding and how to apply.

According to Small Biz Ahead, if you have an existing PPP loan, you can request an increase. It also notes that the definition of “forgivable” expenses has been expanded as well as the Employee Retention Tax Credit.

To see the full list of things to know about the new round of PPP, read the article on the new stimulus act here.