The $900 billion COVID-19 relief package signed into law on December 27 includes $284 billion for a second round of the Paycheck Protection Program (PPP). Informally known as “PPP2,” the new funding is based on similar principles as the PPP funding under the CARES Act, but has some key differences.
For example, PPP2 loans will be available to first-time qualified borrowers and, for the first time, to businesses that previously received a PPP loan. These businesses may apply for another loan of up to $2 million provided they have 300 or fewer employees, have used or will use the full amount of their first PPP loan, and can show a 25% gross revenue decline in any 2020 quarter compared with the same quarter in 2019.
PPP2 also makes the forgivable loans available to business leagues such as chambers of commerce and visitors’ bureaus, as well as destination marketing organizations—provided they have 300 or fewer employees and did not receive more than 15% of the organization’s total receipts from lobbying.
There are many more important details for businesses and not-for-profit organizations to learn about, and helpful articles describing PPP2 are available in The National Law Review and The Journal of Accountancy.
The U.S. Small Business Administration is expected to issue guidance and regulations related to the second round of PPP shortly.
How REDW Can Help
REDW is here to help you navigate the PPP. Please contact REDW Senior Manager Craig Neumann, or Principals James Ortiz or Christina Roderick to discuss any concerns about PPP-related issues.
REDW is committed to keeping you informed at all times, and especially through the impacts of the COVID-19 pandemic. Stay connected with us on LinkedIn and @REDWLLC on Twitter. Access some of our other updates on our COVID-19 Resource Hub.
