Late Sunday, December 27 President Trump signed the omnibus bill of $2.3 trillion passed by Congress just days before. Originally President Trump refused to sign the bill desiring more money to go to the American people; it appears that Congress is making attempts to pass additional legislation today (December 28, 2020) to meet the President’s demand on behalf of the American people.
Of the 2.3 trillion, $900 billion is reserved for COVID relief and $284 billion specifically has been reserved for a second round of PPP loans. The legislation contains some details, but, as with the first round of PPP funds, more “guidance” will need to be supplied from the SBA.
Briefly the new program looks like this:
Loans equal to 2.5 times average monthly payroll.
Maintenance of comparable number of employees will be expected.
Expect many of the forms to continue to use the online portal developed by the banks during round one.
The second round of funds looks much like the original program, but there are differences:
Those who participated in the first round of funds will be expected to show a 25% reduction in support during 2020 vs 2019 to receive additional funding. This will be measured based on a calendar quarter basis (only one quarter needs to show the reduction).
Fewer banks are expected to participate as they will not earn loan initiation fees this time. (They were paid 5% of the loan value for round one).
Churches that wish to participate in round two are advised to have all 2020 payroll and employment records available for a quick loan application turnaround.
Wisdom Over Wealth will again be available to assist churches seeking to participate in this program. If your church is interested in the second round of PPP Loans, give us a call for more information!
