The second round of the Payroll Protection Plan (PPP) loans opened on January 11, 2021. The U.S. Small Business Administrations (SBA) and the U.S. Department of Treasury released the final guidance for first time applications, and stronger stipulations for second time borrowers.
Forgivable PPP loans require that 60 percent of the loan pay employees & wages and 40 percent is used for rent, utilities, mortgage interest payments and other expenses.
First time applicants can apply for loan coverage for any length between 8 and 24 weeks. Among the other business-related expenses that can be covered by the loan are supplier costs and property damage.
Second time borrowers must have fewer than 300 employers, and must prove that they suffered at least a 25 percent drop in gross receipts between comparable quarters in 2019 and 2020.