Who can apply:
These potentially forgivable loans are available to new applicants as well as first draw recipients that have or will have used the full amount of their first loan prior to the distribution of their second loan.
The new round adds 501(c)(6) organizations, destination marketing organizations, housing cooperatives, newspapers, broadcasters and radio stations to the list of qualifying organizations and also includes the same types of organizations as allowed in the first draw of PPP funding.
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
How much can you apply for in Draw 2:
- Up to 2.5x average monthly payroll costs up to $2 million (or 3.5 x average monthly payroll for businesses identifying as Accommodations and Food Service as reported on last filed tax returns)
- Expanded eligible expenses now include covered operations (software, cloud computing service that facilitates business operations, product or service delivery or other human resources and accounting costs), property damage due to public disturbances in 2020 (that were not covered by insurance), supplier costs and worker protection expenditures (PPE)
- SBA is authorized to guarantee loans under the PPP through March 31, 2021
Other changes from PPP Draw 1:
- Expenses paid with forgiven PPP funds are tax deductible
- Simplified loan forgiveness application for loans under $150,000
- EIDL Advances do not reduce the amount of eligible forgiveness under PPP
There are other programs available through the legislation that do not involve Greylock Federal Credit Union. Please speak with your trusted accountant or financial advisor to determine the most appropriate route for your business.
We also have a PPP Helpline at (413) 236-4041. The message will be updated with as much information as we know.
Our business lenders are seeing a high level of inquiries coming their way. It may take a day or so for one of them to get back to you, so please be patient.
Thank you for your patience and loyalty!
The Massachusetts Equitable PPP Access Initiative is planning workshops and webinars in English and Spanish for interested business owners. They have sessions scheduled every business day through the end of the month.