Want to apply for a 2nd federally-funded PPP loan? Here's how businesses qualify

Bay Area businesses can start applying for a new round of PPP money.
Friday, January 1, 2021
SAN FRANCISCO (KGO) -- The new year comes with a new round of support for struggling small businesses, but this time there are stricter rules to ensure publicly-traded companies don't get the money.

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The COVID-19 relief bill signed by President Donald Trump consists of $285 billion available for the Paycheck Protection Program.
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How do I know if I qualify for the new round?
According to the legislation, in order to qualify for a second loan (or a first) business owners have to prove:
  • The business was operating before February of 2020.

  • The business has fewer than 300 employees.

  • Your gross income must have dipped 25 percent or more from any quarter in 2019 to 2020.


  • If I already received a loan in the last round, am I allowed to apply for a second one?
    Yes. If you previously received a PPP loan, you can reapply for another one as long as you meet the qualifications.

    When is the deadline to apply?
    The deadline to apply for this latest round is March 31.
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    How are the rules different this time?
    Previously, loans were capped at $10 million. Now, the most a business can receive is $2 million.

    The new bill allows for PPP funds to be tax deductible.

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    Loan money can be used for safety upgrades at businesses, like sanitation stations or to fix any property damage not covered by insurance.



    Borrowers can choose the time period the funds need to be used by.

    "If you see a slow period coming up, if you're a seasonal business, you can delay using the funds over a certain period of time," said Alameda wealth adviser Keith Oslie. "There's no immediate deadline for the money to be used by."



    Publicly-traded companies are not eligible for PPP loans this time.

    For example, San Jose-tech giant Quantum won't be able to qualify for another $10 million loan.

    "The hope is for the money to go to saving our small businesses," said Oslie.
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    Concord-based comic book store owner Joe Field is hoping he won't have to wait another three months to qualify for a $40,000 loan.

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    "I'm cautiously optimistic," said Field. "Banks favor those customers will power behind them, I'm hoping this round gets to customers actually on Main Street."



    Manager Larry Silva of The Buena Vista agrees.

    "We've had to furlough 45 employees...we are just trying to survive," said Silva.

    The century-old café is a San Francisco staple. Like most restaurants -- it's in dire need of help.

    "It feels like we are the last light house," Silva said. "I hope this money gets into the right hands."

    The COVID relief bill has set aside $12 billion specifically for minority-owned businesses.



    To find local assistance from the SBA near you, click here.

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