COVID-19 PPP ROUND 2: What You Need To Know
At MSYS, we know that many of you are anxious to take advantage of the new PPP2 legislation. So, we wanted to make you were aware of some information regarding the timeline that is currently known for applying for these funds:
Smaller community banks in disadvantaged areas will be allowed to accept applications BEFORE the larger banks and woman-owned/minority-owned businesses are being served first.
On Monday, January 11, 2021, those early banks were allowed to begin accepting first draw (PPP1) applications from businesses that have not yet received any PPP funding.
On Wednesday, January 13, 2021, those early banks will be allowed to start accepting second draw (PPP2) applications from businesses coming back for the second round of PPP funding.
There has not yet been an official update on when the rest of the banks will be opening applications. Most banks are saying they will open as soon as SBA allows it.
The accounting community anticipates that the PPP2 funding will not be exhausted as quickly as the first round. This round of funding includes several differences from the first round. Specifically:
Loans over $2M are expressly prohibited.
Businesses must demonstrate a significant decline in revenue to qualify.
As a result, this round is expected to be a controlled process with funds made available for a more extended time. We strongly advise you to reach out now to your banker for information on their anticipated application start date. We are busy strategizing the most advantageous timing of PPP2 and ERTC for our clients who are now eligible to receive relief funding from both programs in 2021.
MSYS will continue to provide updates as we learn of them. In the meantime, do not hesitate to contact us if you have any questions.