Paycheck Protection Program (PPP) PortalAs of today, Tuesday, January 19, all participating PPP lenders are now able to submit both 1st & 2nd draw loan applications to the Small Business Administration (SBA). Contact your financial institution to verify if it is an SBA-approved PPP lender and if it is currently accepting PPP applications.
Is Now Accepting Applications
Limited Eligibility for Second Round PPP Loans
Available to first-time qualified borrowers
Available to borrowers that previously received a PPP loan
Second-time borrowers must have 300 or fewer employees, and before applying for forgiveness, borrowers must prove that they saw a 25% reduction in gross receipts during a quarter in 2020 compared to the same quarter in 2019
Maximum Loan Amount
The maximum loan amount in the second round is $2 million. Click here to learn how to calculate maximum loan amounts according to each business type.
Maximum Loan Amounts for the Hospitality Industry
Borrowers that have NAICS Code 72 (typically restaurants and hotels) are permitted to use a 3.5x multiplier of their average monthly payroll costs to calculate their maximum loan amount, subject to the $2 million cap.
Use of PPP Funds
Congress expanded the types of expenses for which PPP loans can be used, which applies to existing PPP loans (except in the event forgiveness has already been obtained) and new loans. At least 60% of the funds should be used for payroll costs, and up to 40% may be spent on operating costs such as rent, covered mortgage interest and utilities, as well as newly approved expenses:
Covered Operations Expenditures
Covered Property Damage Costs
Covered Supplier Costs
Covered Worker Protection Expenditures
As a reminder, PPP loans are designed to be 100% forgivable if the proceeds are spent in accordance with program rules. Additional Paycheck Protection Program Round 2 highlights and immediate information can be found in the National Law Review.
How To Apply
As during the initial round of PPP loans in 2020, the SBA will not accept PPP applications directly from small businesses during the current 2021 round — you must apply through a participating financial institution (click here for a list). The program is expected to close to all borrowers on March 31.