Second Round of PPP - (some) Help is on the Way!!

The Paycheck Protection Program is reopened with over $284B in Funds available for New Loans. This means both previous PPP borrowers and new borrowers now qualify for the second round of PPP. some new changes

What businesses qualify for the second round of PPP?

1. Similar to the first round of PPP - applicants will have between 8 and 24 weeks to use the funds.

2. At least 60% going toward payroll and the other 40% towards eligible expenses like rent and utilities.

3. Some Restrictions:

A. Second Round of PPP loans are capped at $2,000,000 vs $5,000,000 in the first round.

B. No more than 300 employees vs 500 employees in the first round.

C. Must demonstrate a year over year quarterly revenue reduction of at

least 25%(4th QT of 2019 vs 4th QT of 2020). Special rules apply to those

not in operation for all or part of 2019.

B. Borrowers must have spent all the loan proceeds from their first PPP loan

before their second PPP loan is disbursed.

FINALLY some help for the Hospitality Industry!!!

1. Most PPP borrowers can receive a loan of up to 2.5 times their average monthly payroll costs, same as the first round.

2. Now Restaurant, Hotels and other hospitality businesses can get up to 3.5 times their average monthly payroll costs.

3. This will help some restaurants indoor closures and cold winter months.