About the Paycheck Protection Program

The Paycheck Protection Program (PPP) is a part of the CARES Act and empowers the U.S. Small Business Administration (SBA) lenders to deploy funds to eligible small businesses throughout the country to help meet their payroll obligations.

PPP is for eligible small businesses in the US that have been affected by COVID-19, that together with their affiliates have 500 or fewer employees, including non-profit organizations, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors. You will need to work with an SBA eligible lender like CRF to apply for the PPP loans.

About PPP Round Three

Effective December 27, 2020, PPP has been extended through the Coronavirus Response and Relief Supplemental Appropriations Act (the Act), allowing small business owners to access additional COVID-19 relief funds from the Small Business Administration (SBA).

The last day to apply for and receive a PPP loan in the third round of funding is May 31, 2021.

The Act allows businesses that did not get PPP funding in the first rounds to apply or re-apply for a loan (First Draw PPP Loan).  In addition, the Act allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP Loan, with the same general terms as their First Draw PPP Loan.


About First Draw PPP Loans

If you did not receive a PPP loan in earlier rounds, you may still be eligible to receive a PPP loan. Your organization must employ fewer than 500 full-time, part-time, or seasonal employees and must have been operational prior to February 15, 2020 and must remain operational. Entities with more than 500 employees in certain industries that meet SBA’s size standards may also apply.

The maximum amount an organization that has not already received a PPP loan can borrow is the lesser of 2.5 times the average monthly payroll costs and healthcare costs or $10 million.



About Second Draw PPP Loans

If your business or organization received PPP funding and have used the full amount for authorized uses, you may be eligible for a Second Draw PPP Loan under the Act’s second draw provisions. If your PPP loan has not been fully used, you must do so prior to funding of the Second Draw PPP Loan.

To qualify, your organization must employ no more than 300 employees and you must have used or be planning to use the full amount of your First Draw PPP Loan, prior to funding the Second Draw PPP Loan. You must also demonstrate at least a 25 percent reduction in revenue in any quarter of 2020 when compared to the same quarter in 2019.

Loan amounts are limited to 2.5 times the average monthly payroll costs in the year prior to the loan. Businesses operating in the Accommodation and Food Services sector (NAICS 72) are eligible for loans up to 3.5 times your average monthly payroll costs. All Second Draw PPP Loans are limited to $2 million.


All loans subject to credit approval and final guidance from the SBA on the Paycheck Protection Program. Funds are limited and subject to availability.

The information provided is solely for general knowledge and does not provide any professional advice regarding tax, accounting, legal, financial, or any other professional service. PPP borrowers should contact their professional service providers for a complete understanding of the PPP program requirements and forgiveness processes.

SBA regulations regarding the PPP program are subject to further limitations and changes. Borrowers must follow current regulations and processes based on SBA guidelines. All characteristics described above are from the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (Economic Aid Act), and/or the Coronavirus Response and Relief Supplemental Appropriations Act. The terms and information outlined above are subject to change upon further rulemaking or guidance from the U.S. Small Business Administration and the U.S. government.