News Talk 94.1/AM 1600 Where The Upper Cumberland Talks
The next round of COVID PPP Loans are around the corner for small businesses with some eligibility changes.
Small Business Center Director Tyler Asher said businesses most experience at least a 25 percent reduction in gross revenue in any 2020 quarter compared to 2019.
“So, quick example,” Asher said. “So, if you did $100,000 in revenue in the second quarter of 2019, and then, you did $74,000 in the second quarter in 2020. That would be a 25 percent reduction or more in your gross sales.”
Asher said eligible businesses must have 300 employees or less at one location. The full amount of the first PPP loans also has to be completely spent, Asher said.
“It is designed, of course, to keep people on the books, their payroll,” Asher said. “Also, it will allow you to do your rent or utilities just the same as the first go around.”
Asher said right now, he recommends owners gather past tax returns and quarterly reports to be prepared when applications are released.
“The complication process we honestly don’t know because the SBA (Small Business Administration) has not released that to the banks for the full application process,” Asher said. “I have talked to local bankers, and they don’t want to make any assumption just yet, because the way it happened the first go around, we got things together and by the time they would go to apply for it at the bank, it already changed. We are keeping a very close eye on it. As things happen, we will get the word out.”
The loan forgiveness process has also simplified this go around, Asher said. Loans $150,000 or less will be a one page forgiveness application. Any loan larger will go straight to the Small Business Administration.
For anybody finding conflicting information, Asher said the best practice is to call the Small Business Center and find which institutions are participating.
