Small businesses hit by the pandemic recently got some good news – the $900 billion relief act signed into law by President Donald Trump granted additional funding for the Paycheck Protection Program, a forgivable loan program established by the CARES Act.
The $284 billion allocated gives those that weren't approved for the first iteration another chance to apply and allows businesses that have exhausted previous PPP money and have been significantly impacted by the pandemic to apply for a second draw.
It also makes forgiveness easier for businesses that use the majority of the money for payroll and makes the loans tax-free.
Further guidance is set to be released from the U.S. Small Business Administration, and while there is no clear timeline for when applications for the second round will open, experts recommend that small businesses start preparing their paperwork now if they plan to apply.
"The first time [PPP] came out, we were all scrambling, we were all trying to figure out what it meant, what documentation you needed and how the whole plan would work," said Megan Gorman, an attorney and managing partner at Chequers Financial Management in San Francisco.
"Now, while we are waiting for guidance from the SBA, we can tell you a little more and give framework, which is good," she said.
Here's what you'll need to have ready.