Unless extended by Congress, applications for new first- or second-draw PPP loans must be filed by March 31, 2021. Ample funds remain in the PPP and are unlikely to be exhausted prior to the deadline. To be eligible to apply for a second-draw loan, a business must:
- have received a first-draw PPP loan and fully used the proceeds for authorized expenses only;
- have no more than 300 employees;
- have had at least a 25% reduction in gross receipts between comparable calendar quarters in 2019 and 2020; and
- certify that the loan is “necessary to support ongoing business operations in light of current economic conditions.”
Key information from the Small Business Administration includes:
Dealers can find more information on the NADA Coronavirus Hub. As always, dealers interested in a new PPP loan should discuss these issues with their attorneys and financial advisors.