PPP Round 2 loans open for business! Can you take advantage?

If you’re looking to take advantage of the newest round of Paycheck Protection Program (PPP) loans, the time is now!

The Small Business Administration has started taking applications for the recently re-opened First Draw Loans (Jan. 11, 2021), as well as the new Second Draw Loans (Jan. 13, 2021).

Here’s what you need to know to take advantage by the March 31 deadline.

Is your business eligible this time?

Employers that previously received PPP loans can apply for a second one with the same general terms.

The maximum draw for the loan this time? 2.4 times average monthly 2019 or 2020 payroll costs, up to $2 million.

Your business is eligible if you:

• got a First Draw PPP Loan and will or have used the full amount for authorized purposes
• don’t have more than 300 employees, and
• demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

Jennifer Azara

Jennifer, a member of the CFO Daily News staff, has covered business and finance for more than 22 years. She has written for CFOs, credit and collections professionals and accounts payable practitioners and has spoken at industry conferences on sales and use tax compliance.