INFORMATION FOR ALL: BY THE ALEXANDER CITY CHAMBER OF COMMERCE

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The new Payroll Protection Program is now available for application.
First Draw Payroll Protection Program (PPP) Loans are for those borrowers who have not received a PPP loan before August 8, 2020. First Draw PPP Loans can be used to help fund payroll costs, including benefits, and may 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.
First Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:
o   Employee and compensation levels are maintained
o   The loan proceeds are spent on payroll costs and other eligible expenses; and
o   At least 60 percent of the proceeds are spent on payroll costs
You can apply for a First Draw PPP Loan until March 31, 2021.
Second Draw Payroll Protection Program (PPP) Loans are for eligible small businesses with 300 employees or less, that previously received a First Draw PPP Loan and will use or have used the full amount only for authorized uses, and that can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020. 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.
Second Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8 to 24 week covered period following loan disbursement:
o   Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan
o   The loan proceeds are spent on payroll costs and other eligible expenses; and
o   At least 60 percent of the proceeds are spent on payroll costs
You can apply for a First Draw PPP Loan until March 31, 2021.
For more information, visit https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program. We encourage anyone interested in applying to first contact their banker and/or accountant.
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