Provided below are highlights a for the new Paycheck Protection Program, courtesy of Dan Alms of Ivanhoe Capital Advisors.  The SBDC will be hosting PPP webinars once there is sufficient detail to share about the program and application process.


  • $2,000,000 Max Loan Amount

How to determine Loan Amount:

  • 2.5x’s their average monthly Payroll costs for Business
  • 3.5x’s their average monthly Payroll costs for Food Service & Hotels

Eligible Entities:

  1. Employ not more than 300 employees
  2. Have used or will use the full amount of their first PPP Loan
  3. Demonstrate at least a 25 percent reduction in gross receipts in the first, second, or third quarter of 2020 relative to the same 2019 quarter. Provides applicable timelines for businesses that were not in operation in Q1, Q2, Q3, and Q4 of 2019. Applications submitted on or after January 1, 2021 are eligible to utilize the gross receipts from the fourth quarter of 2020.
  4. Accommodation and food services operations with a NAICS codes starting with 72 and fewer than 300 employees per physical location
  5. Must be businesses, certain non-profit organizations, housing cooperatives, veterans’ organizations, tribal businesses, self-employed individuals, sole proprietors, independent contractors, and small agricultural co-operatives

Ineligible Entities:

  1. Public Traded Companies
  2. Entities that receive a grant under the Shuttered Venue Operator Grants

Uses of Funds:

  1. Payroll Costs (includes employer-provided group insurance benefits)
  2. Rent
  3. Covered Mortgage Interest
  4. Utilities

Additional Uses of Funds:

  • Fix property damage due to public disturbances
  • Covered worker protection and facility modification expenditures, including personal protective equipment, to comply with COVID-19 federal health and safety guidelines.
  • Expenditures to suppliers that are essential at the time of purchase to the recipient’s current operations
  • Covered operating costs such as software and cloud computing services and accounting needs


  • To be eligible for full loan forgiveness, PPP borrowers will have to spend no less than 60% of the funds on payroll over a covered period of either eight or 24 weeks — the same parameters PPP1 had when it stopped accepting applications in August
  • Borrowers of a PPP second draw loan would be eligible for loan forgiveness equal to the sum of their payroll costs, as well as covered mortgage, rent, and utility payments, covered operations
  • expenditures, covered property damage costs, covered supplier costs, and covered worker protection expenditures incurred during the covered period
  • The 60/40 cost allocation between payroll and nonpayroll costs to receive full forgiveness will continue to apply
  • Creates a simplified forgiveness application process for loans of $150,000 or less. Specifically, a borrower shall receive forgiveness if a borrower signs and submits to the lender a certification that is not more than one page in length, includes a description of the number of employees the borrower was able to retain because of the loan, the estimated total amount of the loan spent on payroll costs, and the total loan amount. The SBA must create the simplified application form within 24 days of the bill’s enactment and may not require additional materials unless necessary to substantiate revenue loss requirements or satisfy relevant statutory or regulatory requirements

Additional Benefits of the program:

  • You do not have to pay back the EIDL Advance (payments you have made will be refunded if you have already received forgiveness)
  • You can deduct your expenses you paid with the PPP funds
  • This bill allows borrowers that returns all or part of a previous PPP Loan to reapply for the maximum amount available to them