(CBS DETROIT) – Detroit businesses can now apply for loans of up to $2 million during the second round of the federal Paycheck Protection Program.
The city says this round focuses on women- and minority-owned businesses in low-income neighborhoods. Loans are available at 1 percent interest paid back over 30 years. Loans may be forgiven if spent on eligible expenses, primarily payroll.READ MORE: AAA Michigan Highlights Charles E. Allen's Contributions To The Community
During the first round, nearly $650 million was distributed to 5,412 Detroit businesses. The average loan was $120,000, and an estimated 58,000 jobs were preserved.READ MORE: 22 People Charged With Operating Drug Pipeline From Detroit To North Dakota
Applications for the latest round of the program are being accepted through March 31 at Detroitmeansbusiness.org.
First Draw Eligibility
If you did not receive a loan in round one, here are the qualifications:MORE NEWS: Michigan Grocery Workers Upset They're Not Included In Next Round Of Vaccine Eligibility
- Small business with fewer than 500 employees or a sole proprietor
- Were in operation by Feb. 15, 2020 and have a tax ID
Second Draw Eligibility
If you did receive a loan in round one, here are the qualifications:
- Small business with fewer than 300 employees or sole proprietor
- Was operating by Feb. 15, 2020 and have a tax ID
- Demonstrate a loss of 25% in any quarter in 2020 compared to 2019
- Round one funds must be spent before receiving round two funds