With the new updates on the Small Business Administration’s financial relief options, small business owners can now apply for a PPP loan round 2 in Fort Collins! Business owners who have applied before can take advantage of the upgraded loan amount by submitting a Second Draw application to Small Business Administration (SBA). Business owners applying for the first time can also submit their requirements for the First Draw, and the deadline for both is until May 31, 2021.
The question is: How? Small and medium-scale entrepreneurs who are not familiar with the procedures may have difficulty beating the deadline. There is little time left to understand PPP and complete the requirements. Some may still not know if they are qualified or not.
Aside from taxes, Certified Public Accountants (CPAs) are the front runners when it comes to financial aid. Seeking help from a professional will be the best way to go about this, especially when time is running out. This article provides valuable details to help you apply for PPP round 2 in Fort Collins.
Understanding the Paycheck Protection Program
The COVID-19 pandemic has either closed down or put small businesses near bankruptcy. It’s a good thing that the government launched several financial reliefs for entrepreneurs to continue operating, including the PPP loan in Colorado and other US states. The program gives small business owners the option to keep their employees on payroll instead of downsizing their workforce or shutting down their businesses.
The First Draw PPP
The First Draw of the Paycheck Protection Program is a type of loan available to qualified small business owners who have not yet applied for a PPP loan before. It aims to provide business owners a direct incentive to continue paying their employees’ salaries and benefits and finance their businesses’ operating costs.
Who are qualified?
- Sole proprietors
- Self-employed individuals
- Independent contractors
- Businesses with no more than 500 employees or meet the industry size standard set by SBA
- Non-profit organizations
- Veterans organizations
The list of qualified businesses includes those that have a North American Industry Classification System (NAICS) code. If you are not familiar with this or would like to know the terms that cover each classification, seeking help from a CPA is highly recommended.
How to apply for the First Draw PPP?
If this is your first time, don’t apply for a PPP loan round 2 to cover the payroll costs of your Fort Collins business. The First Draw is your first option.
You can download the application form from the SBA’s website, fill it out, and submit it to any of SBA’s accredited lenders. This form will determine whether you are qualified for the PPP or not. Make sure you don’t skip fields to avoid being delayed or declined.
Apply for PPP Round 2 in Fort Collins
Employers who have previously received a PPP loan can apply for PPP loan round 2 in Fort Collins to fund the following:
- COVID-19-related worker protection expenditures
- Payroll costs
- Utilities and rent
- Mortgage interests
- Operation expenses
- Costs of supplies
- Physical damage to uninsured properties (looting, vandalism)
Loan Amount and Qualifications
Under the Second Draw PPP, the SBA offers 2.5 times a business’ average monthly payroll cost of up to $2 million in 2019 or 2020. For businesses in the Accommodation and Services industry, the loan amount is 3.5x up to $2 million.
Qualified borrowers include:
- Businesses with 300 employees and below
- Those who have received a First Draw PPP loan
- Businesses that suffered a 25% drop in their gross receipts during the quarters of 2019 and 2020.
The loan amounts may also vary depending on the industry to which your small business belongs. A certified public accountant can help you understand this better and calculate how much you can get from the Paycheck Protection Program.
How to apply for a PPP loan round 2 for your Fort Collins business?
The application form downloadable through SBA’s website is the first document that you or an authorized representative need to accomplish to apply for PPP loan round 2 in Fort Collins. After accomplishing the form, submit it to SBA or its accredited lending partners.
Compared to the First Draw application form, the Second Draw contains additional authorizations, certifications, and representations to verify your First Draw application and other information.
Lending Institutions Where You Can Apply for PPP Round 2 in Fort Collins
The PPP loans are provided through different channels so that entrepreneurs can easily access the assistance. Among the participating institutions include:
- SBA intermediary lenders – You can visit the SBA’s loans portal to check the list of verified microlenders through whom you can avail of PPP round 2 in Fort Collins.
- Certified Development Companies (CDCs) – The SBA also provides you with a list of companies offering PPP according to state.
- Community Development Financial Institutions (CDFIs)
- Minority Depository Institutions (MDIs)
The PPP is available for small business owners until May 31, 2021, or until funds last.
Can You Apply for PPP Loan Round 2 in Fort Collins On Your Own?
The COVID-19 pandemic has affected hundreds of businesses across the country. Some even had to close down, impacting the employment rate. During these trying times, you need to take the steps necessary to keep your business going. Apply for PPP loan round 2 available in Fort Collins for your small business or take the First Draw PPP loan.
We understand how complicated the calculations and processes can be for you if these are not your cup of tea. If you decide to apply on your own, you may not have enough time to review all the information and accomplish the application requirements on time.
When it comes to valuable financial opportunities, such as the Paycheck Protection Program, a professional CPA can help you with the application process. Certified Public Accountants are always updated on matters dealing with loans.
We at Steven J. Wick & Associates P.C. ensures that we are always up to date. Our team of dedicated accountants, bookkeepers, and business consultants have mastered existing loan policies and studied all the latest so we can help small businesses with their financial needs. We care about your company’s success, as well as survival, especially during the COVID-19 pandemic.
If you need assistance with your PPP loan application, we will provide you with the help that you need as quickly as possible before time runs out.
Contact us immediately so we can start working on your loan application.
