Blog
Jan 21

Loans for Small Businesses with the Paycheck Protection Program (PPP), Deadline is March 31st

  • January 21, 2021

For Tenderloin Small Business Owners,

The U.S. Small Business Administration’s Paycheck Protection Program (PPP) loan program has now been reopened!

You can apply even if you already received a PPP loan if you used your first loan for authorized uses.

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.

PPP Eligibility

  • Small businesses and nonprofits with 300 or fewer employees that were in operation before February 15, 2020, now including 501(c)6 and certain other organizations

  • Certain self-employed, sole-proprietors, and independent contractors
    Demonstrate a loss of 25% of gross receipts in any comparable quarter between 2019 and 2020

  • No collateral or personal guarantees are required

  • Loan size is based on your typical pre-COVID-19 monthly payroll times 2.5, not to exceed $10M. Accommodations and Food Services may receive a loan amount up to 3.5 times their pre-COVID-19 monthly payroll.

  • For Second Draw PPP loans, the same employee and loss of gross receipts requirements apply, and you must have used, or will use, the full amount of your first PPP loan for authorized uses.

Loan Terms:

  • PPP loans have an interest rate of 1%.

  • Loans issued prior to June 5 have a maturity of two years. Loans issued after June 5 have a maturity of five years.

  • Loan payments will be deferred for borrowers who apply for loan forgiveness until SBA remits the borrower’s loan forgiveness amount to the lender. If a borrower does not apply for loan forgiveness, payments are deferred 10 months after the end of the covered period for the borrower’s loan forgiveness (either 8 weeks or 24 weeks).

  • No collateral or personal guarantees are required.

  • Neither the government nor lenders will charge small businesses any fees.

SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses. Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:

  • Employee and compensation levels are maintained. For second draw PPP loans, employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan.

  • The loan proceeds are spent on payroll costs and other eligible expenses; and

  • At least 60 percent of the proceeds are spent on payroll costs

To Apply:
First-time borrowers download the First Draw Application and submit it to a qualified lender.
Second-time borrowers download the Second Draw Application and submit it to a qualified lender.

Application Deadline – March 31st

To Find A Lender:
Visit SBA Lender Match.

Need Technical Help With the Application?

SBA Customer Service: 1-800-659-2955 or answerdesk@sba.gov

Or contact one of these San Francisco-based Technical Assistance Centers:

Score 415-764-4964

Small Business Development Center 415-937-7232

Renaissance Entrepreneurship Center 415-541-8580

Please email us with any questions or to be added to alerts about loans and grants: helen (at) tlcbd.org.