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.

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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

See our updated PPP FAQ sheet

For more information on the latest PPP developments, check out these informative webinars hosted by U.S. Co-ops associate members Wegner CPAs and Dorsey & Whitney LLP.