The Second PPP Loan: What You Need to Know
The Federal Government is coming to the aid of small businesses in the form of grants, loans, and other assistance. This is a dynamic situation that will require good financial planning and constant monitoring of your application in order to take full advantage of the benefits.
Second draw PPP loans
If the following statements apply to your business, you are eligible to apply for your second PPP loan in 2021.
- You have used up your first PPP loan
- Your business was operational before February 15, 2020
- Your business is still open and operational
- You have no more than 300 employees
- If your business has multiple locations, you have no more than 300 employees per location
- You can show a 25% or greater reduction in gross revenue
Further Reading: How to Apply for your Second PPP Loan
Showing a 25% or greater reduction in revenue
A 25% or greater reduction can be shown in one of two ways:
- Comparing your annual gross revenue as reported on your tax return between 2020 and 2019
- Comparing your gross revenue in any quarter in 2020 with your gross revenue in the same quarter of 2019