Paycheck Protection Program (PPP) Round 2; What You Need to Know to Apply

On December 27, 2020 the President signed into law the Consolidated Appropriations Act of 2021. A second round of Paycheck Protection Program (PPP) loans is included within the nearly 6,000 pages of this bill. Congress appropriated an additional $285 billion to fund new PPP loans.

While we are still waiting for banks and the SBA to rollout the official launch of the application process, here are a few things you can do now to prepare.

Preparing to Apply for PPP Round 2 | Checklist

  1. Run comparative income statement with quarterly comparative results. Companies demonstrating a 25% or more reduction in gross receipts in any quarter from 2019 to 2020 are eligible to apply.

  2. Gather head count numbers for 2019 and 2020 from your payroll provider. Companies with 300 or fewer employees are eligible to apply. For restaurants and other with an NAICS code starting with 72, the 300-employee limit is for each location.

  3. Gather 2019 and 2020 payroll reports from your payroll provider.

  4. Gather 2019 and 2020 forms 941, 940 and State Unemployment tax returns.

  5. Gather 2020 health benefit bills (health insurance, group life and disability, and vision and dental) from 2019 and 2020.

  6. Gather 2019 and 2020 employer retirement plan contributions.

  7. Watch for emails from your banker regarding specific application processes and links to bank portals.

  8. Contact us to assist with the application process.

For Schedule C Filers

For Schedule C filers (i.e. self-employed businesses) be prepared with a balance sheet and income statement (or financial records) that can be used to generate your Schedule C – likely much earlier than you typically would have this done. Lenders required a Schedule C for prior PPP loans.

For More Information

Our team will update our SBA Loans & Resources Hub with guidance and the latest information available. The Small Business Administration’s website, SBA.gov, will have additional news and information, here

In the meantime, please don’t hesitate to reach out to our team or your Lurie advisor with your questions. We are here to help. Click here to contact us.

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