This information is accurate as of February 2nd, 2021.

The Consolidated Appropriations Act, 2021 was signed on December 27, 2020, which included provisions to the Paycheck Protection Program for first time borrowers.

For businesses that did not take advantage of the PPP loans in 2020, the opportunity to apply for PPP2 loans has opened. Information regarding PPP2 first time borrowers is below.

Downloadable Documents

Qualifications to Apply

  • Businesses who generally have 500 or fewer employees and are eligible for other SBA 7(a) loans
  • All businesses previously allowed to apply are still allowed as a first time borrower
  • Not-for profits (including churches) are now open for applying
  • Accommodation & food service operations with fewer than 300 employees per location
  • ADDS: 501(c)(6) organizations (chambers of commerce, visitor associations/organizations, etc.)
    • 300 or fewer employees
    • Did not receive more than 15% of funds from lobbying
    • Lobbying funds received did not exceed 15% of total activities or $1M during the most recent tax year ending prior to February 15, 2020

Ineligible Businesses (Businesses Not Qualified to Apply for PPP Funds)

  • Household Employers
  • Businesses who received a grant under the Shuttered Venue Operator Grant program
  • Businesses not in operation at February 15, 2020
  • Businesses currently in bankruptcy
  • Businesses who have closed permanently

Documentation to Help Fill Out Application (See Attached for How to Calculate Loan Amounts)

  • Payroll records
  • Payroll tax filings (form 941, etc.)
  • 1099-MISC
  • Schedule C/F – Sole Proprietor
  • Bank records

Loan amount

  • Maximum amount of loan is the lesser of $10M and the payroll-based calculated formula from the application
  • Generally calculated at 2.5 times the average monthly payroll costs, with some limitations
  • Hotel & restaurant borrowers may receive loans up to 3.5 times their average monthly payroll costs
  • See SBA document ‘How to Calculate Maximum Loan Amounts’ for additional details

Periods Eligible for Payroll Calculation

  • Fiscal year 2019
  • Fiscal year 2020
  • 1 year prior to application date

PPP2 Loan Terms

  • 100% guaranteed under SBA
  • Interest rate of 1% on unforgiven portion of loan
  • 5 year maturity on unforgiven portion of loan
  • Forgiveness application is due no later than 10 months after the covered period (between 8 and 24 weeks after funds received) ends or loan payments commence

Costs eligible for PPP forgiveness:

  • Same as PPP1:
    • Payroll (clarified to include group life, disability, vision or dental insurance)
    • Rent, covered mortgage interest and utilities
  • New eligible costs:
    • PPE & facility modification expenditures to comply with health and safety guidelines
    • Expenditures to suppliers that are essential to support current operations
    • Operating costs – software, cloud computing services, accounting needs
    • Property damage costs related to 2020 public disturbances that were not covered by insurance or other compensation
    • Applies to PPP1 loans also if forgiveness has not yet been processed
  • 60/40 split requirement between payroll and non-payroll costs continues

Other Information

  • Independent contractors do not count as employees
  • Partners of a partnership cannot apply for their own PPP loans using business name/information
  • No funds can be used for lobbying

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