As you may know the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act was signed by the President on December 27, 2020 and provides another round of Payroll Protection Program loans for small businesses. This act contains provisions for both the extension of the original PPP loan to new borrowers who did not take advantage in 2020 and also a “second draw” opportunity for those who have an existing PPP loan and meet size and revenue loss factors.
Borrowers may request a “second draw” loan even if the original PPP loan has not yet been forgiven. The basic criteria includes the following:
- Employ no more than 300 employees
- Be able to demonstrate a 25% reduction in gross receipts from one quarter 2020 relative to same 2019 quarter.
- Have used or will use the full amount of the Original PPP loan prior to disbursement of “second draw”.
- The maximum amount for these “second draw” PPP loans is $2 million
InsurBanc is again prepared to work with eligible agencies to obtain the emergency financing.
If you have an existing PPP loan from InsurBanc, your loan officer will contact you.
For more information or to begin the process for new borrowers, please submit the form below and a Commercial Loan Officer will reach out to you.
*InsurBanc will continue update this information as the SBA provides additional guidance.