Basic Program Information:
Following the latest COVID-19 stimulus relief package issued by Congress, the Paycheck Protection Program is reopening for a second round after closing in August. As was true the first time around, this assistance will provide forgivable loans to small businesses. There are certain eligibility requirements set in place for the second round of PPP loans, and Congress has expanded upon which expenses may qualify for forgiveness.

HUB Funding Solutions is Here to Help:
HUB Funding Solutions previously assisted over 200 business owners with more than $11 million in PPP funds during Spring 2020. Although the first round was quite challenging to navigate, they ensured they worked meticulously to assist everyone and get them through.

Current Plan: HUB Funding Solutions plans on prioritizing their direct network and current clients to help get them in line first for funding. Only after that is in order will it be completely opened up to the general public outside of their network.

Cost: There is NO COST to the borrower for their assistance with the PPP program. They make a minimal fee from the Small Business Association (SBA) for their services.

Lender: They are working with a fund that has been set up specifically to originate, submit, fund, and complete loan forgiveness. The lender has currently a portfolio to-date of over $4 billion in PPP loans.

Process: Borrowers may fill out the registration link here. They will need the following basic information:               
 *Company legal name
* Business EIN or social security number for sole proprietors
 *Number of current employees (including owners)
* Please include the BEST email address and phone number that goes directly to an owner or decision-maker (cell numbers preferred). Email will be the primary mode of communication.

Following submission, borrowers will then receive a series of emails that walk them through each step of the entire process.
 
Who Can Apply?
As per the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, the new PPP loans are limited to businesses with 300 employees or less. Any small businesses (including sole proprietorships), some nonprofit organizations (specifically, 501(c)(19)), self-employed workers and independent contractors (1099), and veteran organizations affected by COVID-19 are eligible to apply. Additionally, small businesses in the hospitality and food industry with more than one location could also be eligible at each specific location if they employ less than 500 workers. *This means each location could potentially be eligible*

**Application Note: Independent Contractors (1099) will need to file their own application. HUB Funding Solutions will be happy to make a custom email with a direct link so that business owners who work with contractors can present the option to their independent contractors staff.**
 
How Much Can a Business Receive?
As before, most eligible employers will be able to apply for loans up to 2.5x their average monthly payroll costs; however, in this round, the maximum amount receivable for second-draw loans is less than that of the first round at 2 million dollars. In accordance with the PPP’s first iteration, the amounts loaned are based on the applicant’s payroll. Additionally, if a former PPP borrower has less than 300 employees and can provide adequate evidence they experienced a 25% loss in gross revenue during any quarter in 2020 compared to that respective quarter in 2019, they may apply for a second PPP loan.


Forgiveness Requirements:
Employers will be eligible to have their entire PPP loans forgiven; however, in order to receive complete loan forgiveness, borrowers are required to spend at least 60 percent of the allotted funds on payroll costs over a flexible time period ranging from eight to 24 weeks, as determined by the employer.

For purposes of PPP loan forgiveness, eligible payroll costs have been clarified to include additional group insurance payments for vision, dental, disability, and life insurance.

The bill also expands the PPP's forgivable expenses to include supplier costs on existing contracts, including for protective equipment, perishable goods, and technology expenditures. The bill dedicates $15 billion to live venues, theaters, museums, and zoos. Furthermore, it specifies that ineligible businesses now include publicly traded businesses, businesses who have not used (and do not intend to use) their original PPP loan, entities affiliated with China or foreign agents, and entities receiving a separate grant under the live venues grant program.
 
 
Click here to begin your registration process now. If you have any additional questions, you may reach out directly to Kalah Sprabeary, owner of HUB Funding Solutions, at kalah@hubfundingsolutions.com.