Prepare Now for PPP Round 2

PPP Loan Program Re-Opens for First and Second PPP Loans — NFIB Ready to Help

Paycheck Protection Program (PPP) loans – both first and second loans – have been extended through March 31, 2021 or until funding runs out. First-time PPP borrowers at community development financial institutions may begin submitting applications this week, with second loans and additional lenders soon to follow.

Small businesses must apply for PPP loans through a qualified financial institution, not through the SBA. Both the first and second loans are eligible for forgiveness when the loan’s funds are used according to the terms and conditions of the program.

First PPP Loan

Eligibility:

500 or fewer employees (including sole proprietor, independent contractor, or self-employed individual)
Been in business prior to February 15, 2020

SBA Documents:
Top-line Overview of PPP First Draw Loans
Paycheck Protection Program First Draw Borrower Application Form

Second PPP Loan

Eligibility:

300 or fewer employees (including sole proprietor, independent contractor, or self-employed individual),
25% or more reduction in gross receipts in Q1, Q2, Q3, Q4 of 2020 compared to same quarter in 2019 or 25% reduction in annual receipts in 2020 compared to 2019.
Used all the funds from the first PPP loan (not required to have applied for forgiveness yet)
Been in business prior to February 15, 2020

SBA Documents:
Top-line Overview of PPP Second Draw Loans
Paycheck Protection Program Second Draw Borrower Application Form

NFIB has created a tip sheet to help with the PPP Second Draw application.

Loan Amount Calculation

Loan amount is based on 2.5x the average 2019 monthly “payroll” costs, 2020 monthly “payroll” costs, or measured over the 12 months preceding the loan. Businesses in hospitality and restaurants (NAICS Code 72) are allowed 3.5x average monthly payroll.

For more information on the PPP as well as EIDL and other business-friendly changes passes in the federal government’s December COVID-19 recovery package 2.0, see NFIB’s Recovery 2.0 Fact Sheet, join in NFIB’s COVID-19 webinar series or go to NFIB’s Coronavirus Resources hub.

Webinar Today:

PPP ROUND 2 APPLICATION STEP-BY-STEP AND VACCINE UPDATES FOR SMALL BUSINESSES

Wednesday Jan 13, 2021 at NOON ET

RSVP NOW