Updated Jan. 28, 2021

Paycheck Protection Program (PPP)

Earlier this month, Congress authorized a new round of PPP funding for businesses impacted by the This new round of the PPP authorizes up to $284 billion toward job retention and certain other expenses.

• PPP Qualification: 25% drop in revenue in one quarter of 2020 compared to same quarter 2019. Fewer than 300 employees per location. In business prior to February 15, 2020.
• Businesses that received a PPP loan the first time can apply for a second loan under the new PPP, with certain restrictions.
• Similar to the first round, you can apply for 2.5 times average monthly payroll in 2019 unless you own a restaurant or bar, then you can apply for up to 3.5 x monthly payroll. PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks.
• PPP loans will now cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures. (The program still requires a minimum of 60% toward payroll expenses.)
• The program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations.
• PPP eligible expenses are now tax deductible. This applies to prior and new PPP loans.
• Loan Forgiveness Reduction: If you also received an EIDL grant, your PPP loan forgiveness will no longer be reduced by the amount of the grant.
• Businesses in low-income communities that received an EIDL loan can get a grant equal to the difference of what they received and $10,000, and those businesses in low-income communities that did not get EIDL loans/Advance grants because funds had run out can now get $10,000.

Here are the things to do before you call your lender to begin your PPP application:

• Determine your eligibility
• Get your financial books in order
• Call your lender