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Ways to Preserve Your Business in a Pandemic

by | Jan 19, 2021

In late December, Congress passed a stimulus package expanding on the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act. This $900 billion stimulus package allocated $284 billion specifically to help businesses across the country. The Small Business Administration (SBA) has announced that larger banks should be able to begin taking loan applications for new (first draw) and existing (second draw) Paycheck Protection Program loans on Tuesday, January 19, 2021. [Supporting Small Business Clients During Coronavirus, Fifth Third Bank, January 11, 2021, 53.com]

New 2021 PPP Program Information

The new stimulus package passed by Congress provides expanded resources for the CARES Act Paycheck Protection Program. The program is available to those who participated in the PPP program last year as well as new participants.

Existing PPP Clients: You may apply for a second PPP loan (Second Draw) if you have used or plan to use the full amount of your first PPP loan before you receive funding for your Second Draw. The requirements are different from last year’s Program and are outlined in the attached PDF. Your existing PPP loan does not need to be forgiven to apply for a second loan.  The SBA has provided helpful details for existing PPP clients HERE.
First Time PPP Borrowers: You may apply for a PPP loan (First Draw) under the Program requirements outlined in the attached PDF.
2020 CARES Act PPP Loan Forgiveness Process

Information is forthcoming for the new, simpler forgiveness process for 2020 PPP loan clients who have loans $150,000 or less and have not applied for forgiveness. Please wait for this information to apply for forgiveness if your loan is $150,000 or less. 

You may apply for forgiveness at any time.

Please review the information below which applies to all PPP loan applications and visit the Department of Treasury’s website for instructions on each forgiveness application form.

Important considerations BEFORE you apply for PPP loan forgiveness:

  • Be sure to visit the Department of the Treasury’s website to review complete guidance prior to applying for forgiveness.
  • Gather all the required documents and scan them PRIOR to applying for forgiveness as you’ll need to upload some of them when you submit your application.
  • The deadline to apply for forgiveness is 10 months after your covered period has ended, before any loan payments would be required.
  • There have been, and continue to be, updates from the SBA and Department of Treasury on the PPP loan program.
  • For additional resources, please consult the Department of the Treasury’s detailed FAQ document.

You should only apply for forgiveness once, so it’s important to read the materials, gather your documents and prepare to complete the forgiveness application ahead of time. [Paycheck Protection Program, First Financial Bank, January 19, 2021, bankatfirst.com]

We highly encourage everyone eligible to take advantage of this program and please direct all further questions to your respective banking partners. Thank you!

Latitude Commercial provides commercial real estate services such as purchasing, leasing, landlord representation, tenant representation, and property management throughout Northwest Indiana and the Chicago Suburbs. To find out how we can help you, call us today at (219) 864-0200.