Highlights For PPP2
Highlights for PPP2 (Second Draw Loans)
If you did not receive a PPP draw in the first round (and you were in business as of 2/15) you can start applying January 11th. If you received a first draw PPP then you can start applying for a second draw January 13th. Application deadline for round 2 is 3/31/2021. Don’t delay if you qualify, funds will go fast! PPP Second Draw Borrower Application Form (1.8.2021).pdf (sba.gov)
What can you use the funds for?
Payroll and benefits costs - Expanded to include life, disability, vision and dental insurance
Mortgage interest expense
Rent
Utilities
PPE related to Covid-19 as well as improvements made such as drive through windows or sneeze guards
Uninsured property damage costs caused by looting or vandalism during 2020
Certain supplier costs and expenses for operations - Business software or cloud computing services, product or service delivery, the processing, payment or tracking of payroll expenses; Human Resources; Sales and billing functions; Accounting or tracking of supplies, inventory, records and expenses; Costs made to a supplier of goods (COGS) pursuant to a contract, order or purchase order that is in effect before the date of disbursement of PPP2
Forgiveness terms:
Employee and compensation levels are maintained in the same manner as required for the first draw PPP loan;
The loan proceeds are spent on payroll costs and other eligible expenses; and
At least 60% of the proceeds are spent on payroll costs.
Covered period ends at the end of 24 weeks or after the funds have been spent.
Who can apply?
Has no more than 300 employees
Previously received a first draw PPP loan and will or has used the full amount only for authorized uses;
Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
*If you have not applied for forgiveness as of 12/26/20 on your first draw loan the additional allowed expenses can be made retro active*
For more details please visit: https://home.treasury.gov/policy-issues/cares/assistance-for-small-businesses
***This is for informational purposes only and should not be considered tax or legal advice***