Late last month, Congress passed legislation to re-launch the Paycheck Protection Program (PPP). This new round of funding ensures that housing co-ops, like all other co-ops, are eligible participants in the program. Co-ops organized as 501(c)(3)s are eligible as well.
The legislation also makes certain hard-hit businesses eligible for a second PPP loan. Second draw PPP loans will be the lower of 2.5 times the borrowers’ monthly payroll or $2 million. For certain food businesses, the payroll multiplier is 3.5 times monthly payroll.
To be eligible for a second draw, borrowers must:
- Have 300 or fewer employees
- Provide gross receipts during any quarter of 2020 that demonstrate at least a 25% reduction from gross receipts of that same quarter in 2019.
- Demonstrate continued economic uncertainty that makes the loan necessary