PAYCHECK PROTECTION PROGRAM - The Thomas Financial Group

Covid-19 Impact on Businesses in 2021

As you probably know many businesses closed their doors in 2020 due to the Corona-19 virus. In my neighborhood I noticed the new local Pizza restaurant has a For Lease sign in the window. Even major chain restaurants have closed some locations due to the Corona virus with no signs of coming back. Thousands of employees have lost jobs and are collecting unemployment. The virus has not let up in 2021 and many businesses are still reeling.

Enter the Paycheck Protection Program – a loan that originated from the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Originally a $350-billion program intended to provide small businesses with 8 weeks of cash assistance through 100 percent federally guaranteed loans. Loans are backed by the Small Business Administration (SBA).

PPP LOAN HIGHLIGHTS

All small businesses are eligible
The loan has a maturity rate of two years and an interest rate of 1%.
Loans made after June 5, 2020 have a length of five years.
The loan covers expenses for 24 weeks starting from the loan disbursement date.
No need to make loan payments until either your forgiveness application is processed, or 10 months after your 24-week covered period ends.
No collateral or personal guarantees required.
No fees.
The loan can be forgiven and essentially turn into a non-taxable grant.

LOAN DETAILS

The Paycheck Protection Program (PPP) now allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP Loan with the same general loan terms as their First Draw PPP Loan.

Second Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.

For most borrowers, the maximum loan amount of a Second Draw PPP Loan is 2.5x average monthly 2019 or 2020 payroll costs up to $2 million.

QUALIFICATIONS

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 AND WHEN TO APPLY

You can apply for a Second Draw PPP Loan from January 13, 2021, until March 31, 2021. SBA is currently accepting Second Draw PPP loan applications from participating lenders.

THE SOLUTION

David Allen Capital, Inc. offers the PPP loan with an amount up to $2 million for businesses with no more than 300 employees and must show at least a 25% reduction in revenue.

Interest rate is 1% annually with maturity at 5 years. No collateral is required for this loan.

To apply click the following link: APPLY HERE