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Can Your Business Qualify for The Second PPP Loan?

Good news for these folks who are looking for more funds to keep business operating! The second round of PPP loans is available not only to the first-time qualified borrowers but also to borrowers that previously received a PPP loan. However, there are more conditions attached to the second round. Here they are:

1.) Loans are limited to businesses that employ no more than 300 employees or meet an alternative size standard. 2) The applicants have to use the entire amount of the first PPP loan. 3.) The gross receipts during Q1, Q2 or Q3 2020 that were at least 25% less than the gross receipts from the same quarter in 2019. If the business was not in operation for a portion of 2019, then the comparable quarters may be different. 4.) The maximum loan amount has been reduced to $2 million. 5.) The loan amount is calculated by multiplying the borrower's average total monthly payroll by 2.5. The second round offers an option to use either a one-year period prior to the date on which the loan is made or a calendar year 2019 for this calculation. The second round of PPP loans does not change the necessity requirement. All borrowers must be able to prove that the economic uncertainty makes this loan request necessary to support the ongoing operations. Stay tuned for an update on the forgiveness requirements as these have changed...

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