What You Need to Know About New Round of PPP Funding for RI Businesses
Saturday, January 16, 2021
The federal government’s Paycheck Protection Program (PPP) is reopening to new applicants and offering more flexibility within the program. It is also offering a second round of funding for qualifying recipients.
RI Commerce has put together a guide to the new round of funding.
In 2020, the PPP helped nearly 18,000 Rhode Island businesses secure more than $1.8 billion in funding, and we hope these new resources will help Rhode Island's small businesses in need of assistance.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTHere are the updates:
• Reopening for new applicants. If you have not yet received PPP you will be able to apply. "First draw" PPP forgivable loans will be available for 2.5x your monthly payroll. We invite you to learn about eligibility requirements here. To learn more about the application process and how to apply, please contact your bank.
• Those who have already received PPP may be eligible for a second round of funding. Qualifying businesses that experienced at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020 may apply for a "second draw" forgivable loan for 2.5x your monthly payroll (or 3.5x your monthly payroll for accommodation and food service businesses). Contact your original PPP lender to learn how to apply. More information on this can be found here.
• Starting Tuesday, January 19. The SBA application portal recently opened for certain smaller lenders, including community banks and credit unions, and will open to all participating lenders on Tuesday, January 19. For more information, click here.
• Lender list available. R.I. Commerce has reached out to lenders to determine which are open to new R.I. applicants. Please consult this growing list of lenders that are receiving inquiries from new applicants.
• Other updates for existing PPP recipients. The recent federal stimulus legislation includes several important updates for existing PPP recipients, including increased forgiveness flexibility and updated tax treatment.
RI Commerce and our partners stand ready to assist. If you have questions about PPP, please fill out the form here.
Additionally, the Rhode Island Small Business Development Center is available to answer additional questions you may have about SBA loans at no cost. You can learn more, and register for free, confidential business advice here.
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