Strongsville: Second Round Of PPP Funding Available

Strongsville OH

20 January, 2021

10:00 PM

Description

Press release from the City of Strongsville: Strongsville's Economic Development Department is sharing this information to assist local business owners. The city is not involved in the application or distribution of PPP loans. Paycheck Protection Program 2 (PPP2) The Consolidated Appropriations Act of 2021 allocates $284 billion to the US Small Business Administration (SBA) in order to facilitate new PPP loans (PPP2). PPP2 loans are available to both first time borrowers and those who received PPP1 loans. Program OverviewBorrowers can receive up to 2.5 times their average monthly payroll costs with a cap of $2 millionBorrowers may elect either an 8 week or 24 week period in which funds from the loan must be usedBorrowers must spend at least 60% of the loan proceeds on payroll costsThe remaining 40% can be used for rent, mortgage interest, utilities, worker protection expenses (such as PPE), property damage costs, supplier costs, and operating expenses including cloud computing and accounting servicesWho is Eligible? First Time PPP Borrowers:Businesses with 500 or fewer employees that are eligible for other SBA 7(a) loansSole proprietors, independent contractors, & eligible self‐employed individualsNot‐for‐profits, including churches501(c)(6) Organizations Second Time PPP Borrowers:Businesses with fewer than 300 employees with the following exceptions: o Maximum of 500 employers for accommodation employersMaximum of 500 employees for food service employers (NAICS Code 72) (x) Businesses must show that they have used/or will use the full amount of their first PPP loanBusinesses must demonstrate a 25% revenue decline in any quarter of 2020 (compared to the same quarter in 2019) Application ProcessApplications should be ready in January 202As with PPP1, loans will be issued through participating banks For more details, please contact your local bank for assistance This press release was produced by the City of Strongsville. The views expressed here are the author's own.