Q: The 2021 Consolidated Appropriations Act included another round of loans through the Payroll Protection Program (PPP). Who qualifies for the loans and related loan forgiveness? Can I get the loan again if I received monies under the prior PPP Program? Did the legislation include any changes to qualified expenses for the forgiveness of the PPP loans?


A: The new loans through PPP are available to first time qualified borrowers and businesses that had a loan in the prior PPP program. Borrowers may qualify to receive up to 2.5 times their monthly payroll to a maximum of $2 million dollars.  Hotel and restaurants can get up to 3.5 times their average monthly payroll cost to a maximum of $2 million dollars. In order an organization to be eligible they must show a 25% gross revenue decline in any 2020 quarter compared with the same quarter in 2019 or a borrower that was in operation for all four quarters of 2019 can submit copies of its annual tax forms that show a reduction in annual receipts of 25% or greater in 2020 compared with 2019.

In addition, an organization that qualified for the first loan can receive a second PPP loan if they have used, or will use, the full amount of the First Draw PPP Loan on or before the expected date on which the Second Draw PPP Loan is disbursed to the borrower.

The following employers may be eligible:

  • Any small business that meets SBA’s size standards (either the industry based sized standard or the alternative size standard) of less than 300 employees.
  • Sole proprietors, independent contractors, and self-employed persons
  • Any business with a NAICS Code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location.
  • Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans’ organization, or Tribal business concern (sec. 31(b)(2)(C) of the Small Business Act) with the greater of:
    • 500 employees, or
    • That meets the SBA industry size standard if more than 500.

The program has expanded the list of expenses that qualify for loan forgiveness the expenses include: 

  • payroll costs (as defined in the CARES Act, Economic Aid Act and this interim final rule);
  • costs related to the continuation of group health care, life, disability, vision, or dental benefits during periods of paid sick, medical, or family leave, and group health care, life, disability, vision, or dental insurance premiums;
  • mortgage interest payments (but not mortgage prepayments or principal payments);
  • rent payments;
  • utility payments;
  • interest payments on any other debt obligations that were incurred before February 15, 2020;
  • covered supplier costs are essential to the operations of the borrower at the time at which the expenditure is made and (B) is made pursuant to a contract, order, or purchase order—(i) in effect at any time before the covered period with respect to the applicable covered loan; or (ii) with respect to perishable goods, in effect before or at any time during the covered period with respect to the applicable covered loan);
  • covered operations expenditures:
    • payments for any business software or cloud computing service that facilitates business operations,
    • product or service delivery,
    • the processing, payment, or tracking of payroll expenses, human resources, sales and billing functions,
    • or accounting or tracking of supplies, inventory, records and expenses)
  • refinancing an SBA EIDL loan made between January 31, 2020 and April 3, 2020. 

Employers should refer to the Small Business Government Resource Paycheck Protection Program, accountants and their lending institutions for complete details on the program. 

For additional information regarding the PPP portal, click on the document below.

Paycheck Protection Program Portal Reopens for Second Round of Loans



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