Small Business Administration preparing for rollout of new small business loans

Small Business Administration preparing for rollout of new small business loans
The new program allows another $284 billion in forgivable federally backed loans. This time around these loans is capped at $2 million instead of $10 million. (Source: WLBT)

RICHMOND, Va. (WWBT) - The government is preparing to roll out the new paycheck protection program with more loans for ailing small businesses.

The new program allows another $284 billion in forgivable federally backed loans. This time around these loans is capped at $2 million instead of $10 million.

Applicants must have no more than 300 employees.

Scott Zickefoose with Keiter CPAs in Henrico and with the Virginia Society of CPAs says businesses must also show at least a 25% drop in revenues from the fourth quarter of 2020 compared to the same quarter in 2019.

“The revenue decline is the threshold in which we’re qualifying folks. So, take some time to document your revenue decline and look at your financials quarter over quarter to make sure you’ll be able to qualify and be able to prove that you’ll qualify,” Zickefoose said.

Businesses have between eight and 24 weeks to use the funds, with at least 60 percent going toward payroll and the rest toward eligible expenses like rent and utilities.

The bill expands the type of covered expenses to include things like remote-work software and sanitation equipment.

It even covers, “property damage and vandalism or looting due to last summer’s protests.”

The deadline to apply is March 31, although funding may run out much sooner.

Copyright 2020 WWBT. All rights reserved.