The SBA announced that it will re-open the Paycheck Protection Program (PPP) loan portal to all eligible lenders this coming Tuesday, January 19, 2021, for a second round PPP loan applications.
A business that is eligible for additional PPP money in the second round, should get with its PPP lender. This second round of funding was included in the recently passed Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (Economic Aid Act).
A business with 300 employees or less is now eligible to apply for a second PPP loan in an amount up to 2.5 months average payroll costs (in the preceding 12 months, 2019 or 2020) or $2,000,000, whichever is less.
Other requirements include the following:
- Previously received PPP money in the original round
- Has used or will use the full amount of the original PPP loan for authorized purposes on or before the disbursement of the second PPP loan
- Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020 (not including receipt of original PPP loan)
An eligible business can apply by submitting SBA Form 2483-SD and accompanying information to its lender. The proceeds of any second PPP loan can be used only for eligible payroll, rent, interest and utilities costs. As with the original application, a certification relating to the statements made in the application is required and should be reviewed carefully.
The last day to apply for a second PPP loan is March 31, 2021.
Please contact a Kerr Russell attorney for more information on the FAQs and qualifying for PPP loan forgiveness.
About the authors:
James Cambridge has more than 30 years of experience in the areas of business law, finance, and real estate. Jim is co-chairperson of the firm’s Business and Corporate Practice Group and a member of the firm’s Executive Committee. He serves as counsel for a number of businesses and handles a variety of matters such as business formations, contracts, employment, lending relationships, restructurings, real estate, buying and selling businesses and resolving troubled business situations. He is experienced in advising closely-held businesses, as well as in advising US and foreign-based companies in establishing operations in both the US and abroad.
Liam K. Healy focuses his practice on helping clients maintain compliance with the myriad of state and federal tax laws and regulations that govern individuals and businesses. A particular focus of Liam’s practice is in the area of employee benefits and ERISA. Liam specializes in designing pension and executive compensation plans to benefit business owners and executives. His practice includes drafting and reviewing deferred compensation agreements, severance agreements and non-compete agreements, representing employers in multi-employer plan collection and withdrawal liability matters.
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