The recently signed legislature opens the door for a slew of relief efforts. Many individuals are obtaining their stimulus checks directly into their respective bank accounts. Unemployment benefits is renewed in some sense and $2,000 stimulus checks may be on the negotiating table. But that is not all. The government will also deploy a third round of the Paycheck Protection Program.
Here is what you must know about the third round of the Paycheck Protection Program.
The Third Round Of The Paycheck Protection Program
President Trump signed the next bridge or lifeline for many individuals after the Christmas festivities. This latest stimulus package had another round of benefits for individuals, households, and businesses.
Businesses will have the chance to access over $280 billion in another Paycheck Protection Program. Small businesses and mid-size firms can take advantage of this offering regardless of whether they were able to take part in the first offering.
If you were able to take a loan out the first time, you could still be eligible for a second draw. How to navigate this situation will always be an enigma at first as the deadline to announce details, and more information is January 6th, 2020.
The first PPP round certainly had quite a bit of urgency and government agencies, specifically, the SBA, moved quickly. This time around, as witnessed by the long wait time to pass the bill, there might not be as much urgency.
While the deadline is on January 6th, 2021, it is uncertain whether the officials in charge of the matter, the SBA, will be able to implement rules and release it to the public as quickly as possible.
At the same time, the SBA has not said anything yet on when and how they will start to accept applications. The SBA may seek to have more certainty in how they set up the program so as to have minimal confusion with every party involved in the process.
The next question that many would like to answer to is when they will receive the funds from these loans? The answer in that department remains unclear today as well.
COVID-19 seems to be raging in different parts of the United States, a portion of businesses seem to be suffering, unemployment is still at an uncomfortable level, and small businesses are still seeking lifelines to stay afloat amid stringent lockdowns. While the technology sector continues to consolidate and thrive with a slew of initial public offerings and significant stock price increases, others in the economy are languishing.
Uncertainty rules the day when it comes to the third round of the paycheck protection program.
Summary on the Third Round Of The Paycheck Protection Program
There is quite a bit of uncertainty on how the program will roll out and how it will take place but we do know a few points for certain.
- Businesses that took part in the first or second round of the paycheck protection program can participate in this next round.
- Loan amounts range from the $2 million to $10 million depending on prior applications, payroll, and other factors.
- This round will also include the clause where you can receive full forgiveness if you follow the guidelines of the paycheck protection program to the letter.
- The stimulus for businesses will consist of a PPP and an EIDL loan.
- The same process occurs where you should be able to apply through specific lenders as the previous rounds.
- Self-employed workers, gig workers, and other similar workers can take part in the Paycheck Protection Program.
- Even those that are in a state of bankruptcy can take part in this third round, depending on certain criteria.
The consensus is that you must apply for the program by late March. Also, you must not be engaging in significant activity or under the umbrella of firm that is engaging in significant activity in China. Others who may find themselves excluded are those companies that are publicly traded, lobbyist organizations, and others.