PPP Round 2

The $900 billion coronavirus relief package signed by the President on December 27 authorizes a second round of Paycheck Protection Program (PPP) loans.  PPP loans are SBA loans that are forgiveable if spent on certain allowed expenses, mostly payroll. Businesses who took the PPP loan during its first round last summer can apply for another PPP loan if they meet certain requirements. They must have fewer than 300 employees and a 25% reduction in gross revenue for any one quarter of 2020 as compared to the same quarter in 2019. Businesses who did not receive the first draw of the PPP funding do not need to meet this requirement. The maximum loan amount will be $2 million and will be calculated similarly to the first draw - 2.5 times monthly payroll expenses. The SBA has not yet issued guidance so banks are not yet accepting applications. However, if you're interested in this loan, contact your banker. Your CPA can also help with the application process.