Paycheck Protection Program (PPP) Loans

Below are the portions of the law that relate to small businesses. Our team has spent significant time over the last few weeks working on this legislation and what it will mean to the small business community.

Here is what we know, so far:

• Small businesses with 300 or fewer employees that have sustained a 25 percent (or more) revenue loss in any quarter of 2020 are eligible to apply for a second draw PPP loan. $284.45B is available for this.
• The maximum second draw PPP loan will be $2MM or 2.5x average monthly payroll like with the initial, first draw PPP loans (3.5x if a business is in NAICS Code 72).
• For second draw PPP loan applicants seeking up to $150k, there will be a simple certification process attesting to the qualifying, quarterly revenue reductions, thus expediting these submissions.
• It provides full tax deductibility of business expenses on forgiven PPP loans (on both first and second draw loans).
• It expands forgivable expenses (beyond the original eligibility) to include supplier costs (such as accounting and IT expenses) and investments in software, facility modifications, and personal protective equipment.
• The loan forgiveness process for first draw and second draw PPP loans less than $150K will be simplified to a one-page certification (business owners will still need to provide the number of employees retained, amount spent on payroll, and total loan amount).

Fountainhead PPP Loans Checklist

PPP Round Two

For all 2nd Draw PPP Loan Requests