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Prepare for Paycheck Protection Program Round 2 With Essential FCU

Did you know that Paycheck Protection Program Round 2 is already available? This forgivable, government-backed loan began in April of last year. It was a measure to help employers who needed extra help paying their employees due to the effects of COVID-19 on their businesses. Although the first round lasted through August of last year, PPP round 2 started on January 11 of 2021. Congress added an additional $284 billion to the PPP program and amended some of the loan forgiveness aspects of the loans. See what’s changed with Paycheck Protection Program Round 2. And find out if your business may meet the eligibility requirements for the loan program.

What You Should Know About Paycheck Protection Program Round 2

Essential FCU started taking applications for new PPP borrowers on January 11. And applications were also made available to existing borrowers on January 13. This means that those who previously borrowed or never borrowed are now eligible to apply for PPP Round 2 at Essential FCU. 

Essential helped over 150 small businesses during the first round of PPP, and that number will grow with PPP Round 2. However, those who did not borrow in the last round should fill out a separate application from those who are borrowing for a second time

What’s Changed

There are several significant changes to Paycheck Protection Program Round 2, some of which include the following. PPP borrowers can now set their PPP loan’s covered between eight and 24 weeks depending on their business needs. Also, eligible candidates have been expanded to include 501(c)(6)s, housing cooperatives, and designation marketing organizations, among others. And flexibility has been added to assist with seasonal employees. 

New expenses are also covered for PPP Round 2. And these include operations expenditures, property damage costs, supplier costs, and worker protections. In addition, some existing PPP borrowers can make a request to modify their First Draw PPP Loan amount.

How Do I Know If I’m Eligible for a Second Draw PPP Loan?

There are a few requirements that Second Draw PPP Loan borrowers must meet. One is that the full amount of the previously received PPP Loan has been or will be used as authorized. Also, these businesses must have no more than 300 employees. However, there are also other requirements that will apply. To get the information you need, reach out to us at commercial@essentialfcu.org with your PPP Round 2 questions. And you can also visit the SBA website to learn more.

Turn to Essential FCU for your Paycheck Protection Program Round 2 Needs

Essential FCU has already helped several small businesses receive PPP to help them navigate the effects of the pandemic. And we are already helping small businesses receive loans with the second round of the program. If you believe your small business may be eligible, it’s time to get in touch with Essential FCU. Call us at 225-353-8238 or contact us online. We will work with you to help you find a loan if your small business is eligible.