The Second Draw of the Paycheck Protection Program (PPP) is opening up this week. The eligibility test is different than the first round. You are eligible for the program if your gross receipts in one calendar quarter of 2020 are down at least 25% compared to the same quarter in 2019, or you are down 25% overall for 2020 compared to 2019.

If you are eligible, the loan amount you can apply for is 2.5X (3.5X for certain businesses) average monthly payroll. Payroll is defined the same way as the first round.  You can use either 2019 or 2020 payroll amounts. 

If your PPP loan is for under $150K, you don’t need to prove a revenue decline at application. You will have to provide it as part of the forgiveness process. Applications greater than $150K will require proof at application.

Keep in mind that even if you meet the thresholds, you will still be required to represent that you need the funds to support your business’s ongoing operations. Information about your loan will ultimately be made public.