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SBA PPP Small Business Loans: Second PPP Funding Round for SMBs

Amid COVID-19 economic fallout, many small businesses with 500 or fewer employees need to navigate the CARES Act and Paycheck Protection Program (PPP) for emergency loans and grants.

Guidance from the Small Business Administration (SBA), the U.S. federal government & banks evolved over time. And a second round of PPP funding round surfaced in early January 2021.

Check this blog for ongoing CARES Act and SBA updates involving:

  1. The Paycheck Protection Program;
  2. EIDL Loan Advance;
  3. SBA Express Bridge Loans; and
  4. SBA Debt Relief.

Blog originally published Sunday, April 5, 2020. Updates are ongoing.

Thursday, March 4, 2021

  • PPP Update for Sole Proprietors: The latest PPP updates may appeal to sole proprietors or owners of very small businesses. The updates: An Interim Final Rule (IFR) clarifies that Schedule C filers can use gross income rather than net, as previously specified. They also released new applications for First-Draw Borrowers and Second-Draw Borrowers. Source: Forbes, March 4, 2021.

Tuesday, March 2, 2021:

  • PPP Application Deadline – Part One: The current PPP program expires March 31, but small business and nonprofit groups are pushing to extend it. Source: Silicon Valley Business Journal, March 2, 2021.
  • PPP Application Deadline – Part Two: On a related note, the AICPA (a major accounting association) called on Congress to extend the PPP application period by at least 60 days. Source: Journal of Accountancy, March 2, 2021.

Monday, February 22, 2021:

  • PPP for Small Businesses With 20 Employees And Fewer: The Biden administration announced that the PPP program will be available only to small businesses with fewer than 20 employees during an upcoming two-week period. The special period, which is slated to start February 24, comes after PPP loans in 2020 went to some larger businesses and publicly traded companies, leading to a backlash and returns of the money. Source: MarketWatch, February 22, 2021.

Wednesday, February 10, 2021:

  • SBA PPP Loan Process Fixes: The SBA has  taken steps to improve the PPP loan process after an outcry from industry groups over flaws in the program (see February 3 update further below). The SBA said it would allow lenders to directly certify the eligibility of small-business borrowers for first- and second-draw loans that had received validation errors, part of a bid to speed up the process. Lenders will also be able to upload supporting documentation for small businesses that had validation errors during the forgiveness process, the agency said. Source: Silicon Valley Business Journal, February 10, 2021.

Thursday, February 4, 2021:

  • PPP Round Two Stats: More than 891,000 borrowers received a total of $72.7 billion from banks and other lenders between January 11, 2021 and January 31, 2021 as part PPP round two, according to the SBA. That means roughly 26 percent of PPP round two funds authorized by Congress in December 2020 have now been allocated. Source: Newsday print edition, February 4, 2021.

Wednesday, February 3, 2021:

  • CPAs Express PPP Concerns: The American Institute of CPAs (AICPA) today sent a letter to the SBA raising concerns about the challenges small businesses are facing with the the current PPP loan application system. The AICPA’s letter acknowledges the important, additional checks that were put in place to address fraudulent applications. However, it adds, “these validation checks are causing tens of thousands of legitimate applications to be denied acceptance by the SBA. Lenders and loan applicants do not understand the process to resolve these declines, creating great anxiety and confusion for small business owners.” Source: AICPA, February 3, 2021.

Monday, February 1, 2021:

Intuit QuickBooks and PPP Loans: The Intuit QuickBooks business has taken several steps to assist QuickBooks customers with second PPP loan applications. Specifically, PPP Eligible QuickBooks customers can:

  • apply for a second PPP loan within QuickBooks Capital’s automated PPP application experience;
  • leverage business data that’s already on the QuickBooks platform;
  • leverage a partnership with SBA-approved lender Cross River Bank to help additional eligible customers facilitate PPP applications directly through Cross River Bank’s platform.

Wednesday, January 27, 2021:

  • SBA Loan Data & Record Keeping Problems: The SBA has found “anomalies” in 4.7 percent of the 5.2 million loans it made through August 2020. The data errors within the SBA’s system has complicated efforts by some borrowers to obtain second-round loans. Source: The New York Times, January 27, 2021.
  • SBA PPP Loan Portal Problems: In a letter to the acting heads of the Small Business Administration and Treasury Department, the American Bankers Association mentioned several significant issues that have arisen since the PPP re-opened in January 2021. Specifically, ABA flagged that the PPP portal does not permit lenders to upload borrower applications for second-draw loans if the borrower still has a pending forgiveness application for a first-draw loan with SBA. Lenders have also reported receiving a high number of incorrect error messages when submitting PPP loan applications for the portal, ABA said. Source: ABA Banking Journal, January 25, 2021.
  • PPP Round Two Loan Totals: The Small Business Administration has approved $35 billion in Paycheck Protection Program loans since opening its loan portal on January 11, 2021, according to new agency data. That dollar figure spans 400,580 round two loans through January 24,2021. Source: Silicon Valley Business Journal, January 27, 2021.

Tuesday, January 19:

  • In the program’s first week, the SBA approved around 60,000 applications from nearly 3,000 lenders. Those applications totaled $5 billion, consuming around 2 percent of the $284 billion the program has available to lend. Source: The New York Times, January 19, 2021.
  • The PPP loan portal will fully open today, January 19, 2021 to all participating PPP lenders to submit first- and second-draw PPP loan applications. Source: Newtek.

Saturday, January 9:

The U.S. Small Business Administration (SBA), working with the Treasury Department, will re-open the Paycheck Protection Program the week of January 11, 2021, for new borrowers and certain existing borrowers. Details from the SBA include:

  • To promote access to capital, initially only community financial institutions will be able to make First Draw PPP Loans on Monday, January 11, and Second Draw PPP Loans on Wednesday, January 13.

Additional key PPP updates, according to the SBA, include:

  • PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;
  • PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
  • The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, destination marketing organizations, among other types of organizations;
  • The PPP provides greater flexibility for seasonal employees;
  • Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and
  • Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.

A borrower is generally eligible for a Second Draw PPP Loan if the borrower:

  • Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
  • Has no more than 300 employees; and
  • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

The new guidance released includes:

For more information on SBA’s assistance to small businesses, visit or

Jim Turner, EVP of Hilltop Consultants, an Intelliteach Company

Friday, January 8:

  • PPP and Small Business Cloud Software: The new PPP legislation updates the definition of operational expenditures eligible for PPP funds to include any business software or cloud computing service facilitating business operations, product or service delivery, human resources and other expenses, according to the bill. Source: CIO Dive, January 6, 2020.
  • MSP Lobbied for Outsourced IT Funding: Hats off to Jim Turner, EVP of business development at Hilltop Consultants, an Intelliteach Company. Turner lobbied for PPP funding legislation to include money for outsourced IT spending. As the Small Business Cloud Software blurb above suggests, Turner’s petition apparently was heard. Source:

Thursday, January 7, 2021:

Isabel Guzman: Next SBA leader?

  • PPP Round Two – Small Lenders Head Start: The Small Business Administration plans to give small lenders a head start with this round two program. In its first two days, the program will accept loan applications only from community lenders like Community Development Financial Institutions, which specialize in working with low-income borrowers and in areas underserved by larger lenders. Source: The New York Times, January 7, 2021.
  • Second Loans Exceeding $150,000: For second loans of more than $150,000, applicants will need to provide their lender with records proving their sales have declined. Lenders will need to do a “good faith review” of those documents. Source: The New York Times, January 7, 2021.
  • Second Loans Below $150,000: For smaller loans, borrowers will not need to provide their sales records as part of their application, but the SBA can request them later. Source: The New York Times, January 7, 2021.
  • New SBA PPP Leader – Biden’s Nomination: President-elect Joe Biden has chosen Isabel Guzman, a California economic development official, to lead the Small Business Administration. The pick is subject to approval. Source: The Wall Street Journal, January 7, 2021.

Read earlier PPP updates by visiting the next page….

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1 Comment


    Peggy Braxton:

    What is status of remaining money in ppp fund from first round.

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