What has changed with round 2 of PPP?

Here’s PPP under the Consolidated Appropriations Act, 2021 at-a-glance:

 

$284 billion has been allocated to PPP (including $138 billion of unspent loans from the first round that were reinvested) and the program has been extended to March 31, 2021

 

• Second-draw loans are available for businesses with under 300 employees

• Businesses eligible for PPP loans has been expanded

• Loan limitations have been expanded for certain businesses

• Forgiveness for loans under $150K have a new, simplified one-page application

• While expenses eligible for forgiveness still require a 60/40 split of payroll costs/other eligible expenses, group health insurance benefits are now included in payroll costs (and these entail life insurance, disability benefits, vision, and dental insurance)

• Eligible expenses for forgiveness have been expanded (for first-draw loans that have not yet been forgiven and for second-draw loans)

• Borrowers are allowed to choose a covered period that is any period of time between eight and 24 weeks

• PPP funding includes dedicated set-asides for community lenders (CDFIs and MDIs) and business that operate in low-income areas

• A clarification has been made indicating that interest rates on PPP loans are non-compounding and non-adjustable 

• A clarification has been made indicating that forgiven PPP loans are not taxable and forgiven expenses are tax-deductible