Paycheck Protection Program (PPP) – Round 2

Previous PPP recipients 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.
  • Can show a 25% gross revenue decline in any 2020 quarter compared with the same quarter in 2019.

The forgivable loans are available to Sec. 501(c)(6) business leagues, such as chambers of commerce, visitors’ bureaus, etc., and “destination marketing organizations” (as defined in the act), provided they have 300 or fewer employees and do not receive more than 15% of receipts from lobbying. The lobbying activities must comprise no more than 15% of the organization’s total activities and have cost no more than $1 million during the most recent tax year that ended prior to Feb. 15, 2020.

First-time borrowers from the following groups are also eligible: 

  • Businesses with 500 or fewer employees that are eligible for other SBA 7(a) loans.
  • Sole proprietors, independent contractors, and eligible self-employed individuals.
  • Not-for-profits, including churches.
  • Accommodation and food services operations with fewer than 300 employees per physical location.

    The bill allows borrowers that returned all or part of a previous PPP loan to reapply for the maximum amount available to them.

    Similar to PPP 1, costs eligible for loan forgiveness include payroll, rent, covered mortgage interest, and utilities.

    PPP 2 makes the following expenses forgivable as well:

    • Covered worker protection and facility modification expenditures, including personal protective equipment, to comply with COVID-19 federal health and safety guidelines.
    • Expenditures to suppliers that are essential at the time of purchase to the recipient’s current operations.
    • Covered operating costs such as software and cloud computing services and accounting needs.

    PPP borrowers may receive a loan amount of up to 2.5 times their average monthly payroll costs in the year prior to the loan or the calendar year with a $2 million maximum. Hotels and restaurants can get up to 3.5 times their average monthly payroll costs, again subject to a $2 million maximum.

    For initial information regarding the PPP round 2 loans, please see

    Other Key Provisions (not all inclusive):

    • Economic impact payments of $600 for individuals making up to $75,000 per year and $1,200 for married couples making up to $150,000 per year, as well as a $600 payment for each child dependent.
    • A $300 per week supplement from Dec. 26 until March 14, 2021 for workers receiving unemployment benefits.
    • An extension of the employee retention tax credit.
    • A 100% business expense deduction for meals (rather than the current 50%) as long as the expense is for food or beverages provided by a restaurant. This provision is effective for expenses incurred after Dec. 31, 2020, and expires at the end of 2022.

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