US Small Business Administration - Paycheck Protection Program Second Draw Loans – PPP ROUND 2 (PPP2)
PPP2 Eligibility Inquiry
Disclaimer: This preliminary information regarding PPP funding in the Consolidated Appropriations Act, 2021, is based on legislation that is subject to further guidance and updating by the Small Business Administration.
Q: What is the Paycheck Protection Program?
A: The Paycheck Protection Program (PPP) is a loan program that originated from the Coronavirus Aid, Relief, and Economic Security (CARES) Act back in February 2020. The first round of funding occurred from March through August
2020. The bill that recently passed by legislation includes a 2nd round of funds for businesses to apply to receive.
Q: Is HAPO offering the 2nd round of PPP loans to small businesses?
A: HAPO CCU is closely monitoring the latest developments through our partnership with the SBA. Before we begin taking applications for the 2nd round of PPP loans, we are awaiting necessary operational guidance from the
SBA and U.S. Treasury. At that time, we will direct our members to the HAPO.org website for clear directions on how to apply.
Q: What is the SBA?
A: The Small Business Administration is a governmental agency that offers loan guarantees on loans made by banks and credit unions that meet the SBA’s underwriting criteria.
Q: Are the qualifications for the 2nd round of PPP loans the same as the 1st round?
A: The Consolidated Appropriations Act, 2021 expands the types of expenses for which you can use the PPP funds. This also applies to existing PPP loan funds (unless you have already obtained forgiveness). In addition to payroll,
rent, covered mortgage interest, and utilities, the Paycheck Protection Program will now let you use loan proceeds for the following:
- Certain operations expenses including business software, business-related cloud computing services, product or service delivery, payroll processing, payment, and tracking costs, HR and billing functions, tracking
of supplies, inventory, records, and expenses.
- Covered property damage costs including costs related to damage or vandalism caused by looting or public disturbances in 2020 that were not covered by insurance or other compensation.
- Listed supplier costs including payments to a supplier of goods that are essential to operations and made pursuant to a contract or order in effect at any time before the covered period or, with respect to perishable goods,
in effect at any time during the covered period.
- Covered worker protection expenses including operating or capital expenditures required to comply with requirements or guidance issued by the CDC, HHS, OSHA, or any state or local government during the period beginning March
1, 2020, and ending on the date when the national emergency expires.
Q: What is PPP loan Forgiveness?
A: If members previously received a PPP loan in the 1st round (between March – August) they are required to apply for forgiveness. There are specific forgiveness applications depending on several variables. The
PPP loan is NOT a grant, and is in fact a loan until the member receives forgiveness from the SBA.
Q: Is HAPO taking Applications for loan Forgiveness?
A: The HAPO Commercial team has been working diligently with our members on assisting them with their forgiveness applications. While many forgiveness applications have already been processed, a small amount remain. For PPP Loan
Forgiveness inquiries please direct them to Commercial Services.