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#29: Second PPP Program for Smaller Business Impacted by COVID

On 12-27-20 President Trump signed the most recent stimulus bill into law.  The new law creates a second PPP program for smaller business that were particularly hard hit due to COVID.  Broad details are included below, but the final rules have not yet been published by the SBA and Treasury Department.  As such, neither Citizens Bank nor any other lender can presently accept applications for this second round of funding.

  • Borrower must show a 25% reduction in gross receipts in any quarter of 2020 over the same quarter in 2019.
  • Maximum loan amount is $2,000,000.
  • Businesses must have 300 or fewer employees.
  • Borrower must have used or will use 100% of their first round PPP loan funds.
  • Loan amount maximum is 2.5 times average monthly payroll costs in the prior calendar year.
  • Borrowers in Accommodation and Food Services may receive up to 3.5 times average payroll costs.

As further details are published regarding this new PPP opportunity we will communicate them to you as quickly as possible.

As always, we stand ready to answer your questions about the PPP using the best available information. 

Citizens Bank recommends however that you consult your outside advisors and experts in all matters relating to the PPP and loan forgiveness.  We will work to provide you timely and accurate information, but the burden for obtaining forgiveness rests on the borrower. All information provided in this format or any other communication regarding the program is believed to be accurate, but no guarantee is or can be made by any Citizens Bank representative.

Please submit your questions to pppquestions@citizens-banking.com.  Include the name of your business in your e-mail.  We will endeavor to answer in a timely way with the best information currently available.

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