Who is eligible to apply for PPP with CPB?
To apply for a First Draw or Second Draw PPP loan with CPB, we are requiring applicants to have an existing CPB business checking or business savings account in the name of the borrowing entity.
Clients without a CPB checking or business savings account should review the new account checklist, then open an account at a branch convenient to you. Find locations and hours here.
PPP loans will be available to first-time qualified borrowers and, for the first time, to businesses that previously received a PPP loan. Specifically, previous PPP recipients may apply for another loan of up to $2 million, provided they:
- Have 300 or fewer employees.
- Have used or will use the full amount of their first PPP loan.
- Can show a 25% gross revenue decline in any 2020 quarter compared with the same quarter in 2019.
PPP also makes the forgivable loans available to Sec. 501©(6) business leagues, such as chambers of commerce, visitors’ bureaus, etc., and “destination marketing organizations” (as defined in the act), provided they have 300 or fewer employees and do not receive more than 15% of receipts from lobbying. The lobbying activities must comprise no more than 15% of the organization’s total activities and have cost no more than $1 million during the most recent tax year that ended prior to Feb. 15, 2020.
PPP will also permit first-time borrowers from the following groups:
- Businesses with 500 or fewer employees that are eligible for other SBA 7(a) loans.
- Sole proprietors, independent contractors, and eligible self-employed individuals.
- Certain not-for-profits, including churches.
- Accommodation and food services operations (those with North American Industry Classification System (NAICS) codes starting with 72) with fewer than 300 employees per physical location.
The bill allows borrowers that returned all or part of a previous PPP loan to reapply for the maximum amount available to them.
New Relief Programs to Know
Shuttered Venue Operations Grant (SVOG) – SBA to administer and disburse funds. Please contact the SBA directly for more information about applications and submissions.
The SVOG program is scheduled to open on April 8, 2021 and will provide $16 billion in economic relief to targeted industries including live venues, theaters, museums, and zoos. Find program information here.
To prepare to apply, review these tips.
- Webinar recording of the SBA-led SVOG application process covers documentation needed, a review of the application and more. View YouTube video.
- Businesses can receive a PPP loan and an SVOG. The American Rescue Plan Act amended the SVOG program so entities that apply for a PPP loan after Dec. 27, 2020 can also apply for an SVOG, with the eligible entity’s SVOG to be reduced by the PPP loan amount. However, under the law, entities will be ineligible for a PPP loan after they receive an SVOG. More on relief programs.
- Available SVOG tools. The SBA has everything you need to know including updated FAQs, video tutorials, an eligibility requirement chart and more here.
Restaurant Revitalization Fund (RRF) – SBA to administer and disburse funds
The RRF program, which does not have a scheduled opening date yet, will offer $28.6 billion in grants to hard-hit restaurants and bars, with restaurants able to apply for grants based on lost revenue. Continue watching for information on the SBA’s COVID-19 relief options web portal.
For frequent SBA updates, follow their Twitter account. On March 30, the SBA tweeted a welcome announcement that restaurant owners seeking to participate in the RRF program will not need to sign up for a System for Award Management (SAM) account or be required to have a DUNS number saving restauranteurs hours of time.
Increased EIDL Amounts
The SBA is increasing the maximum eligible amounts for Economic Injury Disaster Loans (EIDLs). Beginning April 6, recipients – including those who previously received an EIDL – can access up to $500,000. The previous limit was $150,000.
Businesses that previously received an EIDL are not required to submit a request for an increase, as the SBA is expected to reach out directly via email and provide more details about how businesses can request an increase.