WORCESTER, Mass. - Small businesses can again apply for some much needed relief through a second round of the Paycheck Protection Program [PPP].
The U.S. Small Business Administration is allowing PPP-eligible lenders with $1 billion or less in assets to submit applications beginning Friday.
Businesses with 500 or fewer employees who didn’t receive ppp money in the first round can apply for a maximum loan of $10 million.
Businesses who already received PPP money can apply again but this time around the loan is capped at $2 million and the businesses must have 300 or fewer employees and show at least a 25 percent revenue drop quarter to quarter compared to the prior year.
Bay State Savings Bank president and CEO Peter Alden said in the first round they gave out more than $30 million through more than 350 PPP loans, and they anticipate this round will be the same or more.
Alden said, "As the pandemic has extended there are a lot of businesses that held on for a long period of time, many of which got the PPP loan the first time, many that did not and there's a real need for this second round for both new, plus second rounders. I think it's very vital, especially given winter in this area and the fact that restaurants especially can't be open except on a very limited basis. So I think there's an even larger need now."
Alden says the loans are fully forgiven when at least 60 percent is used for payroll costs and eligible expenses.
The portal will open to all PPP lenders beginning Tuesday, January 19.