Small Business Development Center hosts PPP second draw webinar


Contributed by the
Opelika Chamber of Commerce

The Small Business Development Center offered a free webinar on Friday, Jan. 15.

The webinar was recorded and is available at

Topics includes eligibility, loan amounts, the new application form, changes to covered expenses and how to maximize forgiveness.

PPP2 Timeline

• New stimulus bill passed overwhelmingly by both houses of Congress on Dec. 21, 2020

• Signed into law on Dec. 27

• Two interim/final rules issued Jan. 6, 2021

• Two borrower applications issued Jan. 8

• Certain funding opened Jan. 11. Most banks expected to be ready Jan. 18

• SBA is still to issue new guidance by way of updated FAQs and new, consolidated IFR

PPP2 Top-Line Overview

• $284 billion of new PPP loans

• For businesses in operation on Feb. 15, 2020

• Similar in many respects to first round

• Full Forgiveness if, during 8-24 week covered period

• FTE and compensation levels are maintained

• Spent on payroll costs and other eligible expenses

• At least 60% spent on payroll

• Other eligible expenses expanded to include

• Expenses to comply with health and safety (i.e. PPE)

• Expenditures to suppliers that are “essential” to current operations

• Software, cloud computing and accounting

• Targeted Eligibility for second draws

• Previously received a First Draw PPP Loan

• No more than 300 employees

• Twenty-five percent reduction in gross receipts between comparable quarters in 2019 and 2020

• A new chance for a first draw

•  If never received a First Draw PPP Loan

• No more than 500 employees

• Hotels and restaurants with fewer than 300 employees per physical location

• Maximum Loan Amount

• Two-and-a-half times average monthly 2019 or 2020 payroll

• Maximum of $2 million (vs. $10 million)

•  Controlled group cap $4 million (vs. $20 million)

• Employees limited to $100,000 annual pay

• Three-and-a-half times average monthly for Accommodation and Food Services

• How and When to Apply

• Available from Jan. 11, 2021, through March 31

• Through any existing participating lender (a list can be found on the SBA website)

Important Links

• SBA (First Draw PPP Loans):

• SBA (Second Draw PPP Loans):

• SBA (PPP Loan Forgiveness):


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