New details for PPP 2.0

Slowly but surely, we’re getting more information about the much-anticipated second round of the Paycheck Protection Program. The SBA has just released new guidance for the $284 billion program. It doesn’t tell us when the new application portal will open, but it does say the deadline for round two applications will be March 31, reports Andy Medici for the BBJ.

Here’s a few other worth noting:

If you received a PPP loan in 2020, it could be advantageous to work with your same lender again because you won’t need to submit any additional documentation.

Second time applicants will need to show a 25% reduction in revenue in any quarter in 2020, compared with the same quarter in 2019. But you won’t need to submit those documents now if your application is for $150,000 or less. The information can come when, or anytime before, you apply for forgiveness.

If you didn’t apply for the PPP last year you can do that too. In fact, the SBA has reserved $15 billion for first time applicants with 10 or fewer employees and you won’t need to document the same 25% year-over-year revenue drop that second timers must.

There’s also a separate $15 billion grant program for live venues and theaters. Applicants can only apply and receive funds from one or the other.

Here’s links to the SBA guidance released Wednesday.

• SBA Guidance on Accessing Capital for Minority, Underserved, Veteran and Women-Owned Business Concerns  
• Interim Final Rule on Paycheck Protection Program as Amended by Economic Aid Act 
• Interim Final Rule on Second Draw Loans

For more information and updates, visit SBA.gov/PPP or Treasury.gov/CARES