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 www.asbdc.ecenterdirect.com/events/8781.
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): www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program/first-draw-ppp-loans
• SBA (Second Draw PPP Loans): www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program/second-draw-ppp-loans
• SBA (PPP Loan Forgiveness): www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program/ppp-loan-forgiveness