Congress Reauthorizes the Paycheck Protection Program
On Monday, Jan. 11, the U.S. Small Business Administration and Treasury released new Paycheck Protection Program (PPP) borrower application loans for first-time borrowers, with second-time borrowers to follow on Jan. 13. Congress authorized relaunching the program with $284 billion in funding to eligible small businesses.
The new loan forms are:
- Form 2483 – Paycheck Protection Program Borrower Application Form—updated from a previous version that started the original PPP program in 2020.
- Form 2483-SD – PPP Second Draw Borrower Application Form—a new form for qualified PPP borrowers to seek a second draw of a forgivable loan as they try to navigate the ongoing economic downturn.
The PPP borrower application forms contain instructions on how to calculate payroll costs consistent with the guidance provided on Wednesday. In general, first- and second-time PPP borrowers may receive a loan amount of up to 2.5 times their average monthly payroll costs (with a cap per employee of $100,000 annualized) in 2019, 2020 or the year prior to the loan. The maximum loan amount is $10 million for first-time borrowers and $2 million for second-time PPP borrowers.
Eligible physicians who are interested in applying for a PPP loan should consult with their local lenders, financial and legal advisers for a thorough understanding of the program. Click here to find more information.