PPP Round Two

The President recently signed into law roughly $900 billion for an emergency COVID-19 relief package, which includes an additional allocation of funding to the Small Business Administration (SBA) for a new round of the Paycheck Protection Program (PPP), as well as money for other critical needs. The bipartisan bill includes, among other things, the following provisions, designed to support small businesses:

•	$284 billion in new funds for the Paycheck Protection Program, including a second draw option for prior PPP borrowers.
•	Maximum “second-draw” loan amount is 2.5 times the average monthly payroll, capped at $2 million, and limited to small businesses with 300 or fewer employees that have sustained a 25 percent revenue loss in any quarter of 2020.
•	Entities in industries assigned to NAICS code 72 (Accommodations and Food Services) may receive PPP loans of up to 3.5 times average monthly payroll costs.
•	Provides a process for borrowers to request an increased loan amount if regulations were updated, even if the loan has already been fully disbursed.
•	In addition to payroll expenses, mortgage interest, rent and utilities, forgivable PPP expenses have been expanded to include covered operations (software, cloud computing, and other human resources and accounting needs); property damage costs due to public disturbances not covered by insurance that occurred during 2020; covered supplier costs; and covered worker protection expenditures (PPE).
•	Loan forgiveness process is simplified for borrowers with PPP loans of $150,000 or less

If the above criteria apply to your business and you are interested in applying for the second round of the Paycheck Protection Program, please let us know.

In addition, if you previously received funds from the first Paycheck Protection Program and need help with the forgiveness process, we can help with that as well.

For additional information about the Paycheck Protection Program or the forgiveness process, feel free to contact us.