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PPP 2.0
Payment protection program Second Draw
PPP 2.0 Eligibility
- No more than 300 employees
- Demonstrate at least 25% reduction in gross receipts in either quarter of 2020 as compared to the same quarter in 2019
- If the entity was not in business during the first or second quarter of 2019, but was in business during the third and fourth quarter of 2019 can be eligible
- If the entity was not in business during the first three quarters of 2019, 4th QTR 2019 to 2020 will be used
- If the entity was not in business during 2019 but was in operation on Feb 15, 2020 and following three quarters of 2020, demonstrate not less than a 25% reduction from the gross receipts of the entity during the first quarter 2020
Loan amount
Amount equal to 2.5 times (3.5 times for entities in certain accommodations and food service industries) their average monthly payroll costs, with a maximum loan amount of $2 million
Payroll costs are like that or PPP 1.0: covered mortgage interest, rent, and utility payments
Non payroll expenses of
- covered operations expenditures (software, cloud computing, and other HR and accounting needs)
- covered property damage costs (damage due to public disturbances that occurred during 2020 that are not covered by insurance)
- covered supplier costs (expenditures to a supplier pursuant to a contract, purchase order, or order for goods in effect prior to taking out the loan that are essential to the borrower’s operations at the time at which the expenditure was made’ supplier costs of perishable goods can be made before or during the life of the loan)
- covered worker protection expenditures (for PPE and other adaptive investments to help the borrower comply with health and safety guidelines – at fed, state, and local level – related to COVID-10 during the period between March 1, 2020 and the end of the national emergency declaration)
Seasonal Employers
- Maximum amount is the lesser of
- Average total monthly payments for payroll costs incurred or paid by the entity for any 12-week period between Feb 15, 2019 and Feb 15, 2020 by 2.5x
- New entities
- The sum of the total monthly payments by the entity for payroll costs paid or incurred as of the date on which the eligible entity applies for the covered loan by the number of months in which those payroll costs were paid or incurred or by 2.5x
Original PPP loan (PPP 1.0)
Program will reopen and available until March 31, 2021 for those who have not yet participated or not been funded
SBA 7(a), 504, and microloans that were made prior to the enactment of the CARES Act
SBA will resume its payments of principal and interest for an additional 3 months (8 months for certain small businesses hardest hit by the pandemic), capped at
$9,000 per borrower per month
SBA 7(a), 504, and microloans made within 6 months of enactment of the CARES Act or approved between Feb 1, 2020 and Sept 30, 2021
SBA will pay the first 6 months of principal and interest, capped at $9,000 per month
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