Update: Paycheck Protection Program has ended
It was our honor to have supported more than 300,000 small businesses with COVID-19 relief loans to help them cover expenses, pay employees and get back on their feet.
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Congress signed the new Coronavirus stimulus bill into law on Dec 27, 2020. We’re still awaiting additional guidance from the SBA on rules for the program.
Since 2013, Bluevine has provided over 200,000 small business owners with access to financing and banking services. When COVID-19 hit, we took action to provide SBA Paycheck Protection Program loans, funding 155,000 small businesses with $4.5+ billion and saving 450,000 jobs.
Unlike traditional banks, we’re proud to serve even the smallest of businesses—our median PPP loan size is $19,862. A recent industry study shows fintech companies reached many underserved minority-owned businesses, and nearly a third of our PPP loans went to those in the most disadvantaged communities.
New Coronavirus stimulus package commits $284.5B to small businesses
Congress reopened the PPP with $284.5B allocated for First and Second Draws and simplified loan forgiveness for loans under $150K.
Here’s a high-level summary of the new Paycheck Protection Program (PPP) round included in the bill:
|Timeline||This round of PPP started on Jan 13, 2021 and lasts until Mar 31, 2021. Bluevine is now accepting applications for PPP.|
|Basic two-prong structure|
Some portions are earmarked (i.e., these are amounts the SBA will hold in reserve and are not limits):
|New ineligible businesses and others (First Draw)|
|Second Draw Eligibility||Must:|
Note: Currently, there are no restrictions on working with a different lender for the Second Draw.
|Second Draw eligibility|
|Second Draw amount||Amount of Second Draw = 2.5x average monthly 2019 or 2020 payroll (3.5x for food services).|
|Expenses that count as “Payroll”||“Payroll Costs” means:|
New expenses that count as payroll include employer-provided group insurance benefits (life, disability, vision, and dental).
|New definition for seasonal employers||The new bill defines a seasonal employer to be an eligible recipient if it: (1) operates for no more than seven months in a year, or (2) earned no more than 1/3 of its receipts in any six months in the prior calendar and this definition applies to any loan made before, on, or after enactment including the forgiveness of the loan.|
|Live venue grants||SBA can provide grants to live venues. Recipients can’t participate in PPP.|
|Interest||Interest on PPP is non-compounding.|
Updates to PPP Loan Forgiveness
|Forgiveness eligible expenses||Expanded to include:|
Eligible “Payroll” expenses now include group insurance (life, disability, vision, and dental).
Allows existing loans to use the new expenses for forgiveness.
|Covered Period (for forgivable expenses)||The Covered Period for the previous PPP round was 8 or 24 weeks. Now the Covered Period for all loans (including those made before this new law) can be 8 weeks, 24 weeks, or anywhere in between (no later than March 31, 2021).|
|Sub-$150k borrowers simplified form||Simplified, one-page certification that only requires the following for forgiveness:|
The SBA released new forms, which you can find here.
If you already received a PPP loan from Bluevine, we are not yet ready to accept forgiveness applications. We’ll email you once you can submit your online application.
|Second Draw||Forgiven in the same manner as First Draw.|
|EIDL reductions||EIDL advances will no longer reduce the amount by which a borrower has its PPP loan forgiven. SBA will issue rules for borrowers who already received forgiveness.|
|Tax implications||Any expenses you use to apply for forgiveness are now also tax-deductible.BVSUP-00035|
We’re eager to do what we can to help small businesses and will continue to keep our website updated with PPP news and Bluevine application availability. You can also sign up for regular updates from our team, including when you can apply.