Get Ready Now For Round Two of PPP

Baltimore, MD. January 8, 2021

Baltimore Community Lending (BCL) is strongly encouraging small businesses in Baltimore City to start preparing their Paycheck Protection Program documents now, so they will be near-ready when the US Small Business Administration (SBA) opens the next PPP application window on January 11, 2021. PPP applications will be reviewed on a “first come, first served” basis, so it is critical for businesses to be prepared so they can submit their applications as soon as the window opens. BCL can help you prepare and submit your application.

Here is what we know to date:

  1. The coronavirus stimulus package was signed into law on December 27, 2020.
  2. The SBA Paycheck Protection Program will re-open the week of January 11 for new borrowers and certain existing PPP borrowers
  3. The SBA will accept PPP loan applications only from Community Development Financial Institutions, such as BCL, for at least the first two days.
  4. Businesses can apply for an initial draw of PPP or a second draw of PPP, as long as they meet certain requirements.
  5. The SBA has expanded eligible expenses that can be covered under the loan.
  6. The process to apply for loan forgiveness has been simplified.

Here are actions that you can take to ensure that you are ready:

  1. Consult your accountant or bookkeeper and prepare 2020 financial statements as soon as possible. You will need to demonstrate reduced revenue. If you are unable to prepare financial statements for 2020, be sure that your business’ financial statements for2019 and 2018 are complete and in good order.
  2. Assemble your 2019 and 2020 payroll documents, including payroll ledgers or summary reflecting each employee’s compensation.
  3. Assemble your 2019 tax documents, including IRS Form 941, State Tax Filing Records, Federal Tax Return, 1099-MISC (if independent contractor), IRS Form 1040 Schedule C (if sole proprietor).
  4. Contact Baltimore Community Lending at 443-977-7596 if you have additional questions. We are standing by and ready to help.