Paycheck Protection Program (PPP) &
Economic Injury Disaster Loan (EIDL) Advance Grant

The long-awaited second COVID-19 recovery package was signed into law December 27, 2020. The package includes a second round of funding for both the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) Advance Grant, though eligibility is more targeted for both programs.

Expenses Covered

Businesses can now use PPP funds to cover a wider variety of expenses under the latest relief bill. In addition to payroll costs, rent, and utilities payments—new eligible expenses include operations expenditures (like software), property damage costs, and payments to suppliers.


Under the new relief bill, businesses that receive a PPP loan under $150,000 are eligible for a simplified forgiveness application process. These businesses will be able to complete a one-page certification form in order to apply for PPP loan forgiveness.

Here are a few recent PPP fundings.
Here are some of the main takeaways from the COVID-19 Recovery 2.0 legislation that small business owners should know:

PPP 2.0

Re-opened through March 31, 2021 with an additional $284 billion in funding.

Some businesses will be eligible to apply for a second PPP loan (maximum amount of $2 million), provided they meet the necessary requirements, including:

a. Demonstrate at least a 25% reduction in gross receipts in any quarter in 2020 compared to the same quarter in 2019.                                      
b. Employing 300 or fewer employees
c. Having used or will used the full amount of their first PPP loan

1. Small business owners can also apply for an initial PPP loan.
2. Simplifies the forgiveness application for loans under $150,000.
3. Allows borrowers to specify a covered period between 8 and 24 weeks for PPP 2.0 loans.
4. Repeals the requirement of deducting an EIDL Advance Grant from PPP loan forgiveness amount.
5. Expands eligible expenses to include costs for modified business operations, supplier costs, and costs associated with complying with health and safety guidelines.
6. Businesses in the restaurant and hospitality industries are eligible to receive loans of 3.5 times average monthly payroll, rather than 2.5 times.

EIDL Advance Grant 2.0

Adds another $20 billion for EIDL Advance Grants.
Eligible small businesses are able to receive additional funding if their first EIDL Advance Grant was under $10,000.
Businesses are eligible to receive an EIDL Advance Grant if they:

a. Employ 300 employees or less;
b. Demonstrate at least 30% reduction in gross receipts in any 8-week period between March 2,
2020 and December 31, 2021; and
c. Are located in a low-income community, as defined for the New Markets Tax Credit (NMTC).

As the SBA PPP program continues to evolves, rules and guidelines are subject to change.

Business owners, if you do not believe you're eligible for the PPP program, you may
be eligible for the Economic Disaster Injury Loan program, go here for information.

PPP 2.0 Has Been Extended Until May 31, 2021
Here are a few recent PPP fundings.