Application dates for second round of PPP funding announced

The U.S. Small Business Administration (SBA) and Treasury has announced that lenders with $1 billion or less in assets will be able to open applications for the next round of Paycheck Protection Program (PPP) funding starting Friday, Jan. 15 at 9 a.m. ET. Both first and second-draw loans will be able to apply at that time. For large lenders, the application opens on Tuesday, Jan. 19 for first and second-draw loans. 

Community financial institutions (CFIs) began accepting applications for underserved small businesses on Jan. 11 for first-draw loans and Jan. 13 for second-draw loans. More than 9,100 applications were submitted so far totaling over $1.4 billion of the $284.5 billion available in this round of funding. 

As a reminder, the second round of PPP funding expanded certain provisions of the original program including: 

• Expanded eligibility for nonprofits, independent contractors/sole proprietors/self-employed individuals, certain businesses eligible for other SBA 7(a) loans, accommodation and food services, business leagues with a Sec. 501(c)(6) designation, and news/nonprofit public broadcasting organizations. 
• Expanded eligible costs including COVID-related worker protection and facility modifications; property damage costs related to public disturbances; suppliers expenditures essential to operations; operating expenditures for software/cloud computing services essential for running the business. 
• Simplified applications for first-draw loans of $150,000 or less. 
• Repeal of Economic Injury Disaster Loan advances (EIDL) deduction from forgiveness amount. 
• Repeal of duo claims on a PPP loan and the employee retention tax credit program – Businesses can qualify for both.  
• Allowance for second-draw PPP loans if a business has maxed out the first, has fewer than 300 employees, and a 25% reduction in revenue for any quarter in 2020. 
• Allowance of expenses paid with a PPP loan to be tax deductible.  

You can read more about the provisions of the second round of PPP funding in our blog. Contact us for assistance with a first or second-draw PPP loan and your forgiveness application.  

Mark Mayer, CPA

Mark P. Mayer joined KBS in 2000 and was promoted to partner in January 2015. Mark specializes in reviews and audits in addition to extensive experience in tax preparation and planning.

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