A business that is eligible for additional PPP money in the second round, should get with its PPP lender. This second round of funding was included in the recently passed Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (Economic Aid Act).
A business with 300 employees or less is now eligible to apply for a second PPP loan in an amount up to 2.5 months average payroll costs (in the preceding 12 months, 2019 or 2020) or $2,000,000, whichever is less.
Other requirements include the following:
- Previously received PPP money in the original round
- Has used or will use the full amount of the original PPP loan for authorized purposes on or before the disbursement of the second PPP loan
- Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020 (not including receipt of original PPP loan)
An eligible business can apply by submitting SBA Form 2483-SD and accompanying information to its lender. The proceeds of any second PPP loan can be used only for eligible payroll, rent, interest and utilities costs. As with the original application, a certification relating to the statements made in the application is required and should be reviewed carefully.
The last day to apply for a second PPP loan is March 31, 2021.
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