Select Page

PPP Round 2

by | Jan 18, 2021 | Businesses, COVID-19, News, PPP, SBA

A new round of Paycheck Protection Program (PPP) loans have been announced as part of the massive legislation that was signed into law on December 27, 2020. As with the first PPP, the loan is forgiven if spent on allowable expenses and the funds are limited. It is offered as “first come, first serve”. The Small Business Administration (SBA) has announced that minorities, underserved, veterans, and women-owned businesses can begin applying on January 11, 2021; everyone else can apply later this week. However, no specific dates have been set.

We will continue to monitor the SBA, Synovus, and Kabbage websites for the opening of the portal to apply.

Major Highlights of Changes in PPP Round 2 (PPP2):

  • Businesses that did not receive the first PPP loan can apply.
  • Businesses that received the first PPP money can apply for up to $2 million.
  • Amount of the second draw is determined using 2019 or 2020 payroll costs.
  • First time PPP applicants can use rules for first PPP loan or use new rules.
  • New rules require that the business have a 25% decrease in revenue during any quarter of 2020 as compared to the same quarter of 2019 (PPP2 applicants only). So, get your records together. We will need sales by quarter for 2020. 
  • If you apply for PPP2 using the same lender used for the first PPP, then no additional documents are required to be submitted with the application for amounts up to $150,000.
  • If you have received money from the first round of PPP, the lender that you used will notify you via e-mail when they begin to accept applications.
    • If we (R. L. Goodrich) submitted applications for you during the first PPP round we will contact you once we are notified.
  • Forgiveness has been made simpler and qualified expenses have been expanded.
  • S-Corps, LLC’s, partnerships, Sole-Proprietors, and Non-Profits all qualify.
  • Expenses used for PPP forgiveness are now tax deductible!!! Legal double dipping for the first time in history!
  • Special rules for businesses not open in 2019

Please let us know if you have any questions or if we can assist you with your application.