U.S. SENATE—U.S. Senator Steve Daines today announced that beginning this week, Montana small businesses heavily impacted by the pandemic are able to apply for the second round of Paycheck Protection Program (PPP) loans.
“This PPP funding is critical for Montana small businesses who have been hit hard due to the pandemic,” Daines said. “This funding will help keep Montana small businesses open and their workers employed. I’m glad I was able to help secure it.”
Beginning today, some of Montana’s hardest hit businesses can begin applying for their first draw PPP loans, and beginning January 13th, harder hit businesses can begin applying for a second draw PPP loan. At first only community financial institutions, including banks and credit unions that lend in low-income communities, will be able to initiate PPP loan applications. The program will reopen to all participating lenders shortly thereafter.
In order to be eligible for a second PPP loan, businesses must meet certain qualifications including having no more than 300 employees and experiencing at least a 25% reduction in gross receipts in a quarter between 2019 and 2020.
More details on the new PPP loans can be found below:
- PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;
- PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
- The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations;
- The PPP provides greater flexibility for seasonal employees;
- Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and
- Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
- Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
- Has no more than 300 employees; and
- Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
You can find more information about PPP, eligibility, and how to apply HERE.