The U.S. Small Business Administration is now making a second round of the Paycheck Protection Program (PPP) available to help businesses offset losses caused by COVID-19.
Now through March 31, 2021 businesses can make their first application to PPP, or they can apply for a PPP "second draw" if they already participated in Round 1.
To be eligible for PPP Second Draw, businesses need to be able to show a 25% reduction in revenue comparing one financial Quarter of 2019 to the same Quarter of 2020.
The PPP loan will be calculated by taking the business's average monthly payroll times 2.5. The exception is any business in the restaurant industry; those can take their average monthly payroll times 3.5.
Like the first round of the Paycheck Protection program, this PPP Second Draw is a loan but is meant to be forgivable, as long as the loan is used for approved costs (at least 60% must be used to cover payroll and to keep people employed).
Visit our COVID-19 Resources webpage for more details on how to apply.