Generally, PPP funds can be used for four purposes: payroll, mortgage interest, rent/lease, and utilities. Payroll should be the major use of the loan. The second stimulus bill also introduced four new categories of expenses that are allowed.

Who is eligible for second round of PPP?

Eligibility requires a business to have 300 employees or fewer. Also, the business must have a 25% decrease in any quarter’s gross receipts from 2019 to 2020, which shows the company has experienced financial hardship. Gross receipts include all revenue, including interest and dividends.

How to get a PPP loan from SBA?

SBA is currently offering PPP loans until May 31, 2021. President Biden announced program changes to make access to PPP loans more equitable. 1. Find a lender: Get matched with a lender; Search for lenders in your area; 2. Identify a loan: First Draw PPP loans: If you have not received a PPP loan before, First Draw PPP loans are available to you.

When does a PPP loan need to be spent?

The loan proceeds are spent on payroll costs and other eligible expenses; and At least 60% of the proceeds are spent on payroll costs Second Draw PPP loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:

When does a second draw PPP loan qualify for loan forgiveness?

Second Draw PPP loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement: Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan; The loan proceeds are spent on payroll costs and other eligible expenses; and

How does the SBA paycheck protection program work?

An SBA-backed loan that helps businesses keep their workforce employed during the COVID-19 crisis. The Paycheck Protection Program (PPP) is a loan designed to provide a direct incentive for small businesses to keep their workers on payroll.