PPP2 Overview

Questions about PPP2? Here is an overview:

How much is the loan amount?

The amount is 2.5 times your average monthly payroll during 2019 or trailing 12 months. For hotels and restaurants the amount is 3.5 times average monthly payroll.

How to qualify?

  1. You must have 300 or fewer employees
  2. Have already used or plan to use your original PPP funds
  3. Can demonstrate at least a 25% reduction in revenue during a least one quarter of 2020 when compared to 2019.

When can you start applying?

You can start applying for a second draw PPP now, however, the SBA will initially only accept loan applications from participating community financial institutions.

What is the deadline?

The deadline is March 31, 2021

What can the proceeds be used for?

The loan proceeds can be used for payroll costs, benefits, mortgage interest, rent, utilities, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations. The bottom line is that it can be used for many business expenses.

How can it be forgiven?

You must use the entire loan proceeds on covered expenses, stated above, and at least 60% on covered payroll.

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