PPP Is Back and Team Dealers Should Know What It Is All About

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As the COVID-19 pandemic continues to wreak havoc on the world of team sports – and as we all wait for the vaccine to make a difference – the Paycheck Protection Program (PPP), which allowed so many team dealers, vendors and other small businesses to remain open during the original onslaught of the COVID-19 pandemic, re-opened earlier this month for new borrowers and certain existing PPP borrowers.

This round of the PPP continues to prioritize millions of Americans employed by small businesses by authorizing up to $284 billion toward job retention and certain other expenses through March 31, 2021, and by allowing certain existing PPP borrowers to apply for a Second Draw PPP Loan.

Key PPP updates include:

  • PPP borrowers can set their PPP loan’s covered period to be any length between eight and 24 weeks to best meet their business needs;
  • PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
  • The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives and direct marketing organizations, among other types of organizations;
  • The PPP provides greater flexibility for seasonal employees;
  • Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and
  • Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.

A borrower is generally eligible for a Second Draw PPP Loan if the borrower:

  • Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
  • Has no more than 300 employees; and
  • Can demonstrate at least a 25 percent reduction in gross receipts between comparable quarters in 2019 and 2020.

One of the best resources about the Paycheck Protection Program has been put together by the National Sporting Goods Association at nsga.org.

More information is also available at

https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program

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