Paycheck Protection Program 2.0
What companies are qualified?
- Companies with fewer than 500 employees who have already used or will use the full amount of money granted to them in their initial round of PPP
- Business, some non-profit organizations, self-employed workers, and independent contractors
- Sole Proprietors, independent contractors, and eligible self-employed individuals
Who is eligible?
- Companies with a 25% reduction in gross receipts in the first, second, or third quarter of 2020 to the same quarter in 2019.
Amounts you can borrow?
- Maximum second draw PPP loans are $2 million
- Loan amounts will be based upon the actual payroll amounts
- Loan amounts based upon 2.5 times monthly payroll
When is money available?
- Ten days after signature by the president or January 11, 2021.
What are the payback terms
- 100% forgiveness is the money is used either in 8 or 24 weeks on qualified expenses.
What has changed in round 2 of PPP?
- Second-draw loans are available for businesses with under 300 employees
- Businesses eligible for PPP loans has been expanded
- Loan limitations have been expanded for certain businesses
- Eligible expenses for forgiveness have been expanded (for first-draw loans that have not yet been forgiven and for second-draw loans)
- Borrowers are allowed to choose a covered period that is any period of time between eight and 24 weeks
- A clarification has been made indicating that interest rates on PPP loans are non-compounding and non-adjustable
- A clarification has been made indicating that forgiven PPP loans are not taxable and forgiven expenses are tax-deductible