PPP Criteria
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Details
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Change From Round 1
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Eligibility - Revenue Loss Threshold
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Businesses must demonstrate a 25% revenue loss in gross receipts for any calendar quarter of 2020 when compared with the same quarter in 2019.
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This eligibility threshold was not included in the first round and serves as a needs assessment for the business.
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Standard Loan Amount
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2.5 times monthly payroll
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No, unless classified as NAICS code 72.
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Loan Amount for Accommodation and Food Service Businesses (NAICS 72)
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3.5 times monthly payroll
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Yes. To help eligible restaurants, the second draw is for larger amounts than the original/standard PPP loan amount.
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Maximum Loan Amount
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$2 million
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Yes. Round two reduces the maximum loan for an eligible business form $10 million to $2 million.
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Calculation of Monthly Payroll Amount
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Business selects its monthly payroll as an average of monthly payroll for 2019 OR the monthly payroll for the 12-month period before the origination of the second PPP loan.
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Yes. The two options for average payroll reflect the hiring/rehiring challenges of COVID-19.
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Eligibility - Headcount
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300 or fewer employees
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Yes. The first round was 500 or less.
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Eligibility - Per Location
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Restaurant and lodging businesses secured an explicit carve-out, allowing them to satisfy this requirement if they have 300 or fewer employees per location (versus collectively for other industries).
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This preserves the original PPP's intent, but adjusts the figure to 300 employees rather than 500, for the the hardest hit industries.
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Eligibility - Size/Affiliation
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Restaurant and lodging businesses are not subject to SBA Affiliation Rules that may limit a franchisee's ability to access a loan. This waiver permits otherwise eligible companies, who are affiliated with a common franchisor company, to access a second PPP loan.
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This provides the same waiver as in round one for the franchise related businesses.
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Forgiveness
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The second draw loans are forgivable when spent on eligible expenses (60% payroll/40% non-payroll) during a specific timeframe.
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No change.
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Forgiveness Structure
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Funds must be spent within either 8 weeks or 24 weeks of loan origination (borrower's choice) per the Paycheck Protection Program Flexibility Act. As noted 60% of expenses must be spent on payroll costs (paychecks and group insurance, or retirement benefits) to maximize forgiveness.
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No change.
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New Forgivable Non-Payroll Expense
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Eligible protective personal equipment (PPE), cleaning products and services, reconfiguration of spaces to enable social distancing, and supplier costs (such as perishable goods) can be included in forgivable non-payroll expenses.
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Yes, these are newly added eligible expenses.
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Streamlined Forgiveness
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For borrowers of $150,000 or less, a simplified two-page process will be available to streamline loan forgiveness.
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Yes. This process was previously set at $50,000.
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