SBA Paycheck Protection Program (PPP)

More details about PPP loans.

SBA Paycheck Protection Program (PPP)

The most recent COVID-relief legislation signed into law on December 27, 2020 introduced many changes to the existing Paycheck Protection Program (PPP). The legislation:

  • Reopened First Draw PPP loans for first time PPP borrowers
  • Provided changes that may result in some borrowers applying for a First Draw PPP loan increase
  • Introduced new Second Draw PPP loans
  • Provided additional updates to the PPP loan forgiveness process

Learn more about the changes from Dan Brogdon in this blog post or listen to the changes in our podcast

Apply for a PPP loan 

First Draw PPP Loans – SBA reopened PPP for First Draw Loans the week of January 11, 2021.  If you did not receive a PPP loan previously, you may now be eligible. 

Second Draw PPP Loans – PPP now allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP Loan with the same general loan terms as their First Draw PPP Loan.

Apply for Draw 1 PPP Loan Increase:

Those who received a Draw 1 PPP Loan and have not received loan forgiveness may be eligible for an increase based on rule changes. The application form and additional details will be posted on this page as they are available.

Situations eligible for increase include:

  1. Sole Proprietor Only: Calculation is now based on 2019 Gross Schedule F income instead of Net Schedule F income. This may increase your PPP loan by up to $20,833. 
  2. Partnerships Only: You may be eligible for an increase if you did not use K-1 net earnings from self-employment in your original calculation.
  3. Borrowers meeting the Seasonal Employer definition: Seasonal employers may choose any 12-week period from Feb 15, 2019 to Feb 15, 2020.  
  4. All Borrowers may now include payments toward Employee Group Life, Dental, Disability and Vision in their eligible payroll expenses. 
  5. Restaurants Only: May include tips as wages if they did not previously report them.  
  6. You paid off your PPP loan prior to receiving forgiveness.    

Loan increases may not be requested for any reasons other the those specifically allowed by SBA. As of today, those reasons are the six listed above.  

Apply for PPP Loan Forgiveness 

Those who received a PPP loan may apply for loan forgiveness when the new forms and procedures are released later this month. Before you apply for forgiveness, determine if you qualify for a Draw 1 loan increase and if so, obtain your increase before you apply for forgiveness.    

PPP loans of $150,000 or less – Borrowers will need to sign a one-page attestation that they used funds appropriately and followed program rules. The attestation form and additional details will be posted on this page as they are available.

PPP loans greater than $150,000 – Borrowers will need to go through a process similar to what was in place prior to the December 27, 2020 relief act. The application form and additional details will be posted on this page as they are available. Borrowers with loans greater than $150,000 who choose either an 8-week covered period or 24-week covered period may choose to use our calculator tool: